Section 225BA | Deferred payments on disposals in connection with divorce etc ^F1

(1)This section applies where—^F1

(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,^F1

(b)immediately before A ceases to live with B, the dwelling-house or part is A’s only or main residence,^F1

(c)A disposes of, or of an interest in, that dwelling-house or part to B (“the initial disposal”), and^F1

(d)the initial disposal is in accordance with a deferred sale agreement or order.^F1

(2)If—^F1

(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^F1

(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),^F1

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—^F1

(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^F1

(b)includes a term entitling A to receive a share of any profit made by B as mentioned in subsection (2)(a).^F1