CGT on conditional contract

MiniEggs

Hi

I'm looking at selling a house and some brownfield land as mixed use that will attract CGT

I understand the CGT becomes due from the exchange of contracts and not the date of completion

But what if it is a conditional contract that is exchanged e.g. conditional on planning permission

Is CGT still due even though planning could take a year or more to obtain and the buyer could walk away or re negotiate a lower price at any time?

Do I have to pay HMRC the CGT a year or more in advance and then claim it back if something changes or can it wait until the contract becomes unconditional i.e. all buyer conditions are met and we agree to proceed to completion

Thanks

GDB2222

I think you should get paid for advice on this, but hopefully the tax may only become due when the contract becomes unconditional.

https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg14270

Are you getting a payment for entering into this contract?  That may be taxable immediately.

MiniEggs

Thanks

I could certainly make it so there isn't and have a deferred payment if they choose to walk away to cover legal costs etc