Client sold shares in company in the 17/18 tax year with purchaser due to pay in 2 instalments. Client got 1st instalment but solicitors currently struggling to get 2nd instalment for vendor (my client) & purchaser now considering counterclaim. Contract clear on amount due so it seems clear that this is what goes on the vendor's tax return but can I request payment of capital gains tax in instalments plus subsequently put in a claim to reduce proceeds? Plus can all legal fees incurred on trying to get all proceeds be claimed on the 17/18 tax return? No entrepreneur's relief available on this one.
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Sure. You can always request. They can always say no.
You'll need to agree a TTP agreement, with all that that entails. Reason for being skint, means test etc etc
....and you could also check out TCGA 1992 S280/CG14910 if the instalments are expected to be paid over a period longer than 18 months
...and s48(1) ref what to include/claim.
Legal fees pursuing a debt would not be a cost of disposal (other than of the debt asset, which doesn't help). Do keep an eye on what the fees are for though.
As you appreciate you are caught by s. 48 and the fact that the second instalment is due suggests that s. 280 is of no use.
I think the legal costs are not allowable. They cannot be for the purposes of the disposal - that has already occurred. They are for the purpose of enforcing a debt which of course is not a chargeable asset. I know its not fair but there it is