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Paragraph 14 Anti-forestalling: disposals under unconditional contracts

United Kingdom

(1)

Sub-paragraph (2) applies where—

(a)

an asset is disposed of under an unconditional contract made during the pre-commencement period,

(b)

the asset is conveyed or transferred on or after the commencement date, and

(c)

a relevant claim is made in respect of the disposal.

(2)

The amendments made by Part 4 have effect in relation to the disposal unless—

(a)

no purpose of entering into the contract was to avoid the amendments made by Part 4 having effect in relation to the disposal,

(b)

either—

(i)

the contract was entered into wholly for commercial reasons, or

(ii)

the parties to the contract are not connected persons, and

(c)

the claim includes a statement that the conditions in paragraphs (a) and (b) are met.

(3)

In this paragraph—

  • “the commencement date” means—

    1. (a)

      for the purposes of corporation tax, 1 April 2025;

    2. (b)

      for the purposes of capital gains tax, 6 April 2025;

  • “connected persons” is to be construed in accordance with section 286 of TCGA 1992;

  • “the pre-commencement period” means the period—

    1. (a)

      beginning with 6 March 2024, and

    2. (b)

      ending with the day before the commencement date;

  • “relevant claim” means—

    1. (a)

      a claim under section 152 or 153 of TCGA 1992 (roll-over relief) or a declaration under section 153A of that Act (provisional application of sections 152 and 153),

    2. (b)

      a claim under section 165 of TCGA 1992 (relief for gifts of business assets), or

    3. (c)

      a claim under section 169M of TCGA 1992 (business asset disposal relief).