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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Land: disposals: unascertainable deferred consideration: future amounts

When the future amounts become ascertainable and are received, there will be an occasion of charge for Capital Gains Tax purposes.

On each occasion that one of these further amounts is received, there will be a disposal or part disposal of the right to receive the future payments.

The acquisition cost of that right is the value of the right which has been brought into the computation of the gain or loss arising on the original disposal of land.

For further information on how to deal with such further receipts, see CG14970.

Where losses accrue on disposals of certain rights on or after 10 April 2003 individuals and others within the charge to capital gains tax (but not companies within the charge to corporation tax) may elect to set off the loss in earlier years, see CG15080+.