Year-end tax planning
Date of disposal
The date of the disposal determines the period in which the gain is subject to capital gains tax (CGT). When the rates of CGT change, the determination of the date of disposal can also affect the rate of CGT that applies to the gain.
For the rates of CGT, see the Introduction to capital gains tax guidance note.
The rules for determining the date of disposal vary according to the type of disposal made.
Type of disposal
Under contract
Where an asset is disposed of and acquired under a contract, the time of the disposal and acquisition is the time when that contract is made, ie the date contracts are exchanged. It is not the date of the completion of the contract, or time of the conveyance or transfer of the asset (if different). However, if the contract is never completed, the disposal never takes place.
In the case of a conditional contract, the time of disposal and acquisition is the time when the condition is satisfied. This applies in particular
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