ACCA ATX ^UK Syllabus A2. Chargeable gains - Date of disposal - Notes ^{2 / 3}

Date of disposal

A chargeable disposal occurs on the date of the contract, whether verbal or written. This may not be the same as the date the asset is transferred to the new owner.

It is important to consider the timing of disposals - for example, have you already used your annual exemption for the year? Are you a higher rate tax payer this year but expect to be a basic rate taxpayer next year? In these situations it may be advisable to delay the disposal if practical to do so.  Does the taxpayer qualify for any reliefs? Eg entrepreneurs’ relief/business asset disposal relief? If they delay the sale would they then meet the conditions?

All of these things need to be considered when advising a tax payer on the date of disposal.