Taxes Consolidation Act 1997 section 563

Consideration due after time of disposal

Section 563 provides that the full consideration for a disposal must be brought into the computation of a chargeable gain at the time of disposal, even where payment is deferred, and sets out the rules for adjusting the tax charge if any part of the consideration later becomes irrecoverable.

• The full consideration must be included in the gain computation at the time of disposal, with no discount for postponement of payment, no allowance for the risk of irrecoverability, and no reduction for contingent elements.
• If any part of the consideration is later shown to the inspector's satisfaction to be irrecoverable, the tax charge must be adjusted accordingly, whether by discharge or repayment of tax or otherwise.
• The general time limits for repayment claims under section 865 do not prevent the Revenue Commissioners from making a repayment arising from such an adjustment.
• These rules apply for corporation tax purposes in the same way as they apply for capital gains tax purposes.