C2.106 Deferred and contingent consideration on disposals
The amount of the actual consideration received for the disposal of an asset by a taxpayer could be either fully or partly payable after the disposal in the form of deferred consideration. In addition, part of the consideration may be conditional on a future event happening, ie contingent consideration. The calculation of the amount of consideration will depend on whether any deferred contingent consideration is ascertainable (see below) or unascertainable — see C2.107.
What is ascertainable deferred consideration?
Deferred consideration is ascertainable if the three following conditions are all met for the future payments1:
- Ìý
•ÌýÌýÌýÌý the amounts are known at the date of disposal
- Ìý
•ÌýÌýÌýÌý the amounts can be calculated at the date of the disposal whether or not the calculation has taken
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