Income Tax Act 2007 section 440

Meaning and amount of "disposal-related liability"

Section 440 defines what a "disposal-related liability" means in relation to a charity's qualifying investment, and explains how to calculate its amount when the liability depends on a future uncertain event.

• A disposal-related liability is any liability a charity has under a disposal-related obligation connected to a qualifying investment.
• If the obligation is contingent (dependent on an uncertain future event), the amount brought into account depends on whether the contingency actually occurs.
• If the contingency does occur, the amount recognised is the actual liability incurred as a consequence of that event.
• If the contingency does not occur, the amount brought into account is nil.