Taxation of Chargeable Gains Act 1992 section 28

Time of disposal and acquisition where asset disposed of under contract

Section 28 establishes when a disposal and acquisition of an asset is treated as taking place for capital gains tax purposes where the asset is sold under a contract.

• The date of disposal and acquisition is normally the date the contract is made, not the date the asset is actually conveyed or transferred.
• This rule is subject to the separate provisions dealing with disposals where capital sums are derived from assets.
• Where the contract is conditional — for example, conditional on the exercise of an option — the disposal and acquisition is treated as taking place when the condition is satisfied.
• The distinction between unconditional and conditional contracts is critical, as it determines the tax year in which the gain or loss arises.