Section 225BA — Taxation of Chargeable Gains Act 1992: Deferred payments on disposals in connection with divorce etc

Deferred payments on disposals in connection with divorce etc 225BA 1 This section applies where—

a an individual (“ A ”) ceases to live with A’s spouse or civil partner (“ B ”) in a dwelling-house or part of a dwelling-house, b immediately before A ceases to live with B, the dwelling-house or part is A’s only or main residence, c A disposes of, or of an interest in, that dwelling-house or part to B (“the initial disposal”),

and d the initial disposal is in accordance with a deferred sale agreement or order.

2 If—

a in accordance with the deferred sale agreement or order A receives a sum in respect of a share of any profit made by B upon B’s disposal of, or of an interest in, the dwelling-house or part, and b the receipt of that sum would be treated (apart from this section) as a disposal falling with section 22 (disposal where capital sums derived from assets), that receipt is to be treated for the purposes of this Act as a gain attributable to the initial disposal but accruing to A at the time the sum is received.

3 In this section, a “deferred sale agreement or order” is an agreement or order of a court which—

a is within paragraph (a) or (b), as the case may be, of section 225B(2) (agreements and orders of the court in relation to divorce etc),

and b includes a term entitling A to receive a share of any profit made by B as mentioned in subsection (2)(a).