Land: disposals: unascertainable deferred consideration: part chargeable as income
ICTA88/S776 and ITA2007/S752-772 and CTA2010/S815-833
Where an agreement for the sale of land provides for additional consideration to be received on the happening of some future event, the possibility of liability under ICTA88/S776 etc, see BIM60300+, should be considered.
The most common situations which will be encountered are where the receipt of additional consideration is dependent on
- The purchaser obtaining planning permission in respect of the land (if this is the only condition, liability under ICTA88/S776 etc is unlikely), or
- The purchaser developing the land by constructing housing, offices, shops or industrial premises (liability under Section 776 etc in such cases is a distinct possibility).