Taxation of Chargeable Gains Act 1992 section 280

Consideration payable by instalments

Section 280 allows a person who disposes of an asset and receives the sale proceeds in instalments to pay the capital gains tax due on that disposal in instalments rather than in a single lump sum.

• Where sale proceeds are receivable in instalments over a period exceeding 18 months starting no earlier than the date of disposal, the seller may elect to pay the CGT in instalments rather than as a single payment
• The instalment arrangement for paying the tax must be agreed with HMRC, who determine the amount and timing of each instalment of tax
• The period over which the tax instalments are spread cannot exceed 8 years from the date the tax would normally be due
• The tax instalment period must also end no later than the date on which the final instalment of the sale consideration is due from the purchaser