Finance Act 2003

51 Contingent, uncertain or unascertained consideration U.K.

(1) Where the whole or part of the chargeable consideration for a transaction is contingent, the amount or value of the consideration shall be determined for the purposes of this Part on the assumption that the outcome of the contingency will be such that the consideration is payable or, as the case may be, does not cease to be payable.

(2) Where the whole or part of the chargeable consideration for a transaction is uncertain or unascertained, its amount or value shall be determined for the purposes of this Part on the basis of a reasonable estimate.

(3) In this Part—

• “contingent”, in relation to consideration, means—

  (a)

  that it is to be paid or provided only if some uncertain future event occurs, or

  (b)

  that it is to cease to be paid or provided if some uncertain future event occurs; and

• “uncertain”, in relation to consideration, means that its amount or value depends on uncertain future events.

(4) This section has effect subject to—

• section 80 (adjustment where contingency ceases or consideration is ascertained), and

• section 90 (application to defer payment in case of contingent or uncertain consideration).

Commencement Information

I1 Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)