»Ê¹ÚÌåÓýapp

»Ê¹ÚÌåÓýapp most common situation is for the individual to negotiate the terms for a disposal but to delay signing the written contract until after the date of departure from the UK. One indicator that this may have happened will be if there is a very short interval between the date their residence position changes and the date the contract is signed.

Cases have been seen where the vendor leaves the United Kingdom with a copy of the contract in his possession and posts it from the foreign airport on arrival there. Alternatively, he gives his solicitor a power of attorney under which the solicitor can sign and exchange the contracts on behalf of the vendor once he is outside the United Kingdom. »Ê¹ÚÌåÓýappre are many other variations.

In most straightforward cases, where there is no question of a continuing business or where arrangements have not been entered into to use ESCD2 to avoid tax (for years up to and including 2012-13), it will not be possible to show there is liability to Capital Gains Tax. An agreement, oral or written, which remains ‘subject to contract� is not a binding contract.

Where a formal written contract is entered into after emigration, there is a presumption that the parties intend to leave the transfer unagreed until that time even if it is not explicitly ‘subject to contract�. It may be possible to displace that presumption if evidence can be obtained either that the benefit of ESCD2 is being sought as a means of avoidance (for years up to and including 2012-13), see CG25793, or that the disposal was not in fact conditional or ‘subject to contract� at the time of emigration, see CG25805.