time limit for claims

[maths]

Absolutely !!

[Incredulum]

However, in your example, if an instalment payment due in year 9 proves irrecoverable then the 4 year time limit would run from the end of year 9 (not the end of the tax year of the original disposal).

That is interesting and sounds very sensible indeed. I have to ask, but are you sure on this point? s48 is not exactly clear on this point.


Mullet, I think you're probably right that it is a Marren v Ingles asset. As the additional consideration is unexpected, the value of the asset at the time of original disposal was nil.

[maths]

Yes, pretty sure.

I take your point that s48 is not, as such, explicit but I believe it is implicit if the section is to make sense and does follow I believe from a careful reading of the section.

Until the instalment proves irrecoverable there is, of course, no claim which can be made. Once it proves irrecoverable then a claim can be made. The only sensible time from which the claim can be made is effectively the end of the year when it proves irrecoverable (or the end of the tax year in which the instalment is due) at which time the 4 year limit starts to run.