Section 436 — Income Tax Act 2007: Consideration

Consideration 436 1 For the purposes of the formula in section 434(2) consideration for the disposal is brought into account—

a without any discount for postponement of the right to receive any part of it, b in the first instance, without regard to a risk of any part of it being irrecoverable, and c in the first instance, without regard to the right to receive any part of it being contingent.

2 If—

a any part of the consideration so brought into account subsequently proves to be irrecoverable, and b a claim is made, such adjustment as is required in consequence must be made.

3 An adjustment under subsection (2) may be made by way of discharge or repayment of tax or otherwise.