C2.1115 Capital gains on compulsory acquisition of land—overview
Compulsory acquisition means that the owner is required by law to sell an asset to a purchaser. This often occurs where the Government or a Government agency requires the land for an infrastructure project (eg HS2 or the Olympics). Where land is sold via compulsory acquisition a chargeable gain or allowable loss arises, subject to:
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•ÌýÌýÌýÌý where new land is acquired, a claim to roll over the gain under TCGA 1992, s 247 (see C2.1116), or
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•ÌýÌýÌýÌý on a small part disposal, a claim to deduct the consideration received from the allowable expenditure on a subsequent disposal of the remaining land under TCGA 1992, s 243 (see C2.1117)
Time of disposal for a compulsory purchase
Where an authority with compulsory purchase powers acquires an interest in land otherwise than under a contract, the time at which the disposal and acquisition is made is the time at which the compensation for the acquisition is agreed or otherwise determined (eg by arbitration)1.
Variations
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Web page updated on 21 Mar 2025 09:42