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HMRC internal manual

Capital Gains Manual

Deferred consideration: unascertainable: election for treatment of loss - later eligible years


A limit (the “later year limit”) is set on the amount of the relevant loss that falls to be deducted from chargeable gains of any later eligible year in accordance with TCGA92/S2(2)(b).

The later year limit is the amount in respect of which the taxpayer would be chargeable to CGT for that year

  1. on the assumption described below,
  2. taking account of all previous elections under TCGA92/S279A, and
  3. disregarding the effects of the provisions described below.

The assumption in (a) is that no part of the relevant loss or of any other loss that is the subject of a later election under TCGA92/S279A falls to be deducted from any chargeable gains accruing to the taxpayer in the tax year in question. The assumption is to be made immediately after the election is made in respect of the relevant loss.

The provisions mentioned in (c) are those which provide for the application of taper relief (for disposals between 6 April 1998 - 5 April 2008) or which provide for chargeable gains from which the taxpayer’s personal losses are not deductible to be included in the total amount in respect of which he is chargeable to CGT for the year.