Beta This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Capital Gains Manual

Gifts: instalments: rules for payment

TCGA92/S281 (4) - (5)

If a valid election is made then the tax is paid by ten equal yearly instalments subject to the following:

* which were given to a connected person are sold; or
* which were treated as disposed of by trustees are sold.
  • The first instalment is due on the normal due date.
  • Interest will run from the normal due date and interest on the unpaid portion of the tax will be added to each instalment.
  • The outstanding tax can be repaid at any time with interest to the date of payment.
  • The outstanding tax with interest to the date of payment is to become due and payable immediately where assets

If the outstanding tax arises in respect of a chargeable gain which accrued on account of a clawback of relief under TCGA92/S169C (see CG66920 and CG66920A - for hold-over relief under TCGA92/S165 for gifts of business assets, and CG67067 and CG67067A - for hold-over relief under TCGA92/S260 for gifts of non-business assets), the outstanding tax with interest to the date of payment will become due and payable immediately where any part of the assets transferred in the “relevant disposal” (see CG66921C) are subsequently disposed of for valuable consideration:

  • by the trustees to whom the relevant disposal was made; or
  • some other person.

Interest runs from the time the tax is due as if no election had been made under TCGA92/S281 (2) (CG66520).