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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15915
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I have a client who is selling a large plot of land as a phased

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I have a client who is selling a large plot of land as a phased development. He will receive the proceeds over the course of the next few years. When is the CGT due for payment?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. Can you give me some detail about the agreement between your client and the developer please. Is the amount your client will receive set in stone or is it contingent on some future event? Is there a profit sharing element?
Customer: replied 1 year ago.
I believe it is set in stone. The land in question is actually split between a few family members, but my clients share of it is in a Limited Company. There is a pooling arrangement between the family members and their pieces of land.
Expert:  TonyTax replied 1 year ago.
Thanks. Leave this with me while I draft my answer.
Expert:  TonyTax replied 1 year ago.
As your share of the land is owned by a company, it will pay corporation tax on its share of the gain, though the gain will be calculated using TCGA 1992. As with individuals, since the disposal proceeds are payable in instalments, provided those sale proceeds are ascertainable at the point of sale your company can apply to pay the Corporation Tax in instalments. Take a look at the example here: http://www.hmrc.gov.uk/manuals/cgmanual/CG14910.htm A claim has to be made under Section 280 TCGA1992. HMRC will give you a payment schedule based on the due dates odf receipt of each of the instalments. You should refer to the notes at the links below which deal with ascetainable and unascertainable disposal proceeds as the tax treatment is different for each: http://www.hmrc.gov.uk/manuals/cgmanual/cg14850+.htmhttp://www.hmrc.gov.uk/manuals/cgmanual/cg72850+.htm I hope this helps but let me know if you have any further questions.
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