Sale PPR - Overage payment tax-free after re-re-sale?

[stapleford]

If I sell a developer my 12-year PPR home with an overage agreement of a straightforward £100,000, payable say on commencement of any development, I understand that this "deferred contingent" payment is tax-free.

The overage agreement would be written for 20 years and to run with the land, but my question is whether if my purchaser sold the land on to a different developer (or more likely a different company of his), the tax situation remains the same, i.e. that in the event of the overage being triggered, say in 10 years' time, the payment remains tax-free?

I know nothing is ever simple, but I hope I've included the relevant facts.

[Incredulum]

Ascertainable deferred consideration. So if you sell the property for 300k, with a further 100k due on (say) commencement of development, then the taxable proceeds of disposal - at the time of disposal i.e. now - are 400k. PPR relief should therefore eliminate any gain.

The receipt of the 100k in the future is effectively merely repayment of a debt, so not a taxable event. In the event that you receive less than this sum then you can claim for a repayment of tax - but the tax is nil, so it doesn't matter.

And it does not matter who makes this repayment of a debt to you, it is still a repayment of a debt so not a taxable event.

[stapleford]

Many thanks. What I was particularly afraid of was that the 3-year rule of PPR would mean that after that time the overage payment would become taxable, and your explanation is clear.