Butterfingers
Capital Gains Tax

Gains (and losses) on disposals of assets are, broadly, computed by deducting allowable expenditure from the disposal proceeds. Section 49(1)(c) TCGA 1992 provides that no allowance is made in the first instance for ‘any contingent liability in respect of a warranty or representation made on a disposal by way of a sale or lease of property other than land’. However where such a contingent liability becomes enforceable and is enforced, an adjustment can be made (section 49(2)).