CGT on deferred consideration

Client sold land in 10/11.

The contract included £60,000 which would be paid contingent on there not being contamination of land which the buyer was developing. ie if extra work in removing the contanimation was £40K then the seller would receive £20K.

The full 60K was received in 11/12, there has been no withold of this retention.

 

When should this 60K be taxed.

I think 10/11 on the basis that it's ascertainable. It's not a Marren Ingles thing as it's known but the "60K when condition is met" is muddying my thinking.

 

 

Thanks

Comments
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agreed

LyneT |
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Are you sure?

BKD |
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.

blok |
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TCGA 1992 s 48(1) deals with

LyneT |
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Not legislation I know, but ....

BKD |
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Look at CG 14885.  The first

LyneT |
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terminology...

blok |
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Knowledge of amount

BKD |
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.

blok |
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To clarify, blok

BKD |
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Agreed

George Attazder |
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Thank you to everyone.

HeavyMetalMike |

.

blok |
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Err, I never said it was my

HeavyMetalMike |

.

blok |
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HMRC are only partly correct

BKD |
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Point taken, I was just being

HeavyMetalMike |

Why £60k?

BKD |
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Whoops yes May 11. was when

HeavyMetalMike |

If there was a formula in the

LyneT |
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Dates

BKD |
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No you're not wrong in

HeavyMetalMike |

OK, LyneT

BKD |
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Dates - again

BKD |
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I accept what you say

HeavyMetalMike |