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HMRC internal manual

Capital Gains Manual

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HM Revenue & Customs
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Deferred consideration: shares and securities: Value or quantity of shares

TCGA92/S138A (10)

TCGA92/S138A (10) provides that the value or quantity of the shares or debentures is not to be taken as unascertainable only because one has not been fixed if it will be fixed by reference to the other and the other is ascertainable. For example the sale agreement may specify that the vendor is to receive shares in the purchaser one year after the date of sale to the value of £100,000. The number of shares to be received will depend on their value in one year’s time. At the date of sale this will be unknown but the consideration is not unascertainable for the purposes of TCGA92/S138A. Similarly a sale agreement may specify that £10,000 shares are to be issued to the vendor in one year’s time. Their value will be unknown at the date of sale but the consideration is not unascertainable for TCGA92/S138A purposes.