Taxes Management Act 1970 Schedule 3ZAA paragraph 5

Payment by instalments

Paragraph 5 of Schedule 3ZAA sets out how the deferred capital gains tax exit charge must be paid under an agreed payment plan, specifying six equal annual instalments over a five-year period.

• A CGT exit charge payment plan requires the deferred exit charge to be paid in six equal instalments.
• The first instalment is due on the date the exit charge would normally be payable.
• The remaining five instalments fall due annually on each of the next five anniversaries of that date.
• The total payment period therefore spans six years from the original due date.