Taxation of Chargeable Gains Act 1992 section 279B

Provisions supplementary to section 279A

Section 279B provides supplementary rules that support the deferred unascertainable consideration loss election under section 279A, clarifying when a person is within the charge to capital gains tax, defining what constitutes "unascertainable consideration," and explaining how temporary non-residence rules interact with the election.

• A taxpayer is within the charge to capital gains tax for a year if they are chargeable on gains in that year, or would be chargeable if gains arose and exceeded the annual exempt amount
• Consideration is "unascertainable" only where its amount or value cannot be determined at the time the right is conferred because it depends on future uncertain events — but not merely because payment is deferred, contingent, involves a choice of property, or where one of amount or value is ascertainable
• An earn-out right that is treated as a security under the share exchange reorganisation rules is not regarded as a right to unascertainable consideration
• Questions about which disposal gives rise to a gain or loss, and when that disposal occurs, are determined ignoring the temporary non-residence rules, though those rules still govern in which period the gain or loss is ultimately taxed