Deferred consideration: shares/securities: the election - form and time limits
TCGA92/S138A (5) & (6)
An election under TCGA92/S138A may be made by the person on whom an earn-out right was conferred to have the right treated as a security (if it was conferred before 10 April 2003), or to have it not treated as a security (if it was conferred after 9 April 2003). The election must be made by notice in writing given to an officer of the Board
- in the case of a company within the charge to CT, within two years of the end of the accounting period in which the right is conferred - TCGA92/S138A (5)(a)
- in any other case, the first anniversary of 31 January next following the year of assessment in which the right is conferred - TCGA92/S138A (5)(b).
There is no prescribed form for the election. The election is irrevocable.