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HMRC internal manual

Capital Gains Manual

Deferred consideration: shares and securities: rights conferred before 26 November 1996

FA97/S89 (3)

ESC/D27 was withdrawn on 26 November 1996. A taxpayer may have acquired an earn-out right (CG58011) before 26 November 1996 but not have claimed under the concession. FA97/S89 (3) allows an election to be made as if the earn-out right had been conferred on 26 November 1996.

In the case of a company within the charge to Corporation Tax the election should be made within two years of the end of the accounting period in which 26 November 1996 fell. In any other case the election should be made on or before 31 January 1999.