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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 C2.106) or unascertainable (see below).

Deferred consideration is unascertainable if the amount is not known at the date of the disposal and can only be determined on the basis of events occurring after the date of disposal. Deferred consideration is still unascertainable even if it is subject to a cap. A cap does not make the deferred consideration ascertainable at that maximum amount¹.

An example of unascertainable deferred consideration would be the sale of an company for a £200,000 immediate payment together with a further payment of the excess of profit above £100,000 for the next three financial years subject to a cap of £250,000. The £200,000 is ascertainable