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WHEN is a capital gain realised?

Is the gain date the exchange of contracts or the completion date

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Hello everyone,

I need a little advice please?

My client exchanged contracts on a bit of land in February 2021. Competion and payment received in May 2021.

I believe the Capital Gain should be declared on his 5 April 2021 tax return but I can not find anything to definitively support this. Am I correct?

There is no issue from the client.

Many thanks in advance.

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By David Ex
22nd Jul 2021 19:10

Exchange which is when you enter into the contract - at least, that’s what I have always understood.

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By Geoff56
23rd Jul 2021 08:14

Agreed.

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Replying to Geoff56:
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By Cathy Milligan
23rd Jul 2021 09:08

Thank you

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Psycho
By Wilson Philips
22nd Jul 2021 19:37

Cathy Milligan wrote:
I can not find anything to definitively support this.

The legislation is usually a good starting place - TCGA 1992 s28.
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Replying to Wilson Philips:
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By Cathy Milligan
23rd Jul 2021 09:07

Perfect - thankyou. Just what I was looking for.

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By Truthsayer
23rd Jul 2021 08:56

'Am I correct?'

Yes.

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Replying to Truthsayer:
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By Cathy Milligan
23rd Jul 2021 09:07

Thank you

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