Taxation of Chargeable Gains Act 1992 section 48A

Unascertainable consideration

Section 48A deals with how non-UK residents are taxed when they dispose of certain assets and receive consideration whose amount or value cannot be determined at the time of the disposal, because it depends on uncertain future events.

• Where a non-UK resident disposes of an asset and receives a right to future consideration that cannot be quantified at the time of disposal, this section provides a mechanism for computing the resulting gain or loss when the consideration is eventually ascertained.
• When the consideration is later received and the person is not UK resident in that tax year, a three-step computation adjusts the original disposal figures: the ascertained amount is compared with what was originally attributed to the right, the difference is calculated for each type of gain or loss, and any resulting gain or loss is treated as arising at the time the consideration is received.
• A right is only treated as a right to unascertainable consideration if the amount or value genuinely cannot be determined at the time it is conferred because it depends on future events that have not yet occurred — it does not qualify merely because payment is deferred, contingent, or because there is a choice over the form of property to be received.
• The section applies specifically to relevant non-resident gains and losses, which are gains or losses arising on disposals of UK property interests by persons who are not UK resident or who are UK resident but in the overseas part of a split year.