Can capital gains tax be paid in instalments

Client due deferred consideration for sale but purchaser stalling

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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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RLI
By lionofludesch
23rd Jan 2019 12:09

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

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Scooby
By gainsborough
23rd Jan 2019 12:14

....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

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By Tax Dragon
23rd Jan 2019 13:54

...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.

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By chicken farmer
23rd Jan 2019 14:02

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

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