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HMRC internal manual

Capital Gains Manual

Payment of tax: by instalments

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There are certain specific occasions where payment of tax can be made by instalments. These are detailed below.

Certain gifts

TCGA92/S281 provides for tax to be paid by instalments over ten years if

  • certain specified assets are gifted, and


  • gifts hold-over relief is not available, or in certain circumstances where hold-over relief was obtained but clawed back under the provisions of TCGA92/S169C.

For guidance on how to deal with claims see CG66520+.


Disposal proceeds received in instalments

If disposal proceeds are receivable in instalments but tax is payable in full this may cause hardship. TCGA92/S280 allows the tax to be paid by instalments in certain circumstances. For guidance on how to deal with claims see CG14910+.


Foreign exchange restrictions

TCGA92/S279 provides that payment of tax may be deferred where

  • a person realises a gain on the disposal of assets situated abroad, but
  • is genuinely unable to transfer that gain to the UK because


  • restrictions are imposed abroad, or
  • foreign currency is unobtainable.


For guidance on how to deal with claims see CG78401+.


Exit charge payment plans

TMA1970/SCH3ZB provides for the postponement and recovery of exit charges for companies see CG42390+.

Similar provisions for other persons are in TMA1970/SCH3ZAA where there is a liability that arises in relation to an exit charge under TCGA1992/S25 or TCGA1992/S80 for events occurring on or after 6 April 2019. An exit charge payment plan can allow for payment of tax in up to 6 instalments. The conditions and requirements for an exit charge payment plan are set out clearly in the legislation. Where a person wishes to enter into such a plan it may be submitted with or separately to the Self Assessment return for the year and liaison with colleagues in Debt Management to give effect to the plan may be required.

Cases of doubt or difficulty can be referred to Capital Gains Technical see CG99998.