Section 51 — Finance Act 2003: Contingent, uncertain or unascertained consideration

Contingent, uncertain or unascertained consideration 51 1 Where the whole or part of the chargeable consideration for a transaction is contingent, the amount or value of the consideration shall be determined for the purposes of this Part on the assumption that the outcome of the contingency will be such that the consideration is payable or, as the case may be, does not cease to be payable.

2 Where the whole or part of the chargeable consideration for a transaction is uncertain or unascertained, its amount or value shall be determined for the purposes of this Part on the basis of a reasonable estimate.

3 In this Part— “ contingent ”, in relation to consideration, means— that it is to be paid or provided only if some uncertain future event occurs, or that it is to cease to be paid or provided if some uncertain future event occurs; and “ uncertain ”, in relation to consideration, means that its amount or value depends on uncertain future events.

4 This section has effect subject to— section 80 (adjustment where contingency ceases or consideration is ascertained), and section 90 (application to defer payment in case of contingent or uncertain consideration).

5 This section applies in relation to chargeable consideration consisting of rent only to the extent that it is applied by paragraph 7 of Schedule 17A.