Land: disposals: ESC D18 does not apply
ESC/D18 cannot apply unless the vendor regains ownership of the asset. In particular, it cannot apply in the following circumstances
- where the vendor sells as mortgagee in possession, see CG12706;
- where the asset is sold by a third party, for example a receiver, and the vendor receives less than the outstanding amount of the loan.
In any case in which one or more of the necessary conditions is not satisfied, you should explain to the vendor why relief under ESC/D18 cannot be given. If the vendor still contends that ESC/D18 applies, the case should be submitted to Capital Gains Technical Group.