Section 590 | UK resident sellers: spreading rules

(1)This section applies if the person liable under section 587 is a UK resident.

(2)If the person does not receive the proceeds of sale in instalments, one-sixth of the amount chargeable is taxed in the tax year in which the person receives the proceeds of the sale and in each of the next 5 tax years.

(3)The person may elect to be taxed instead on the whole of the amount chargeable under section 587 in the tax year in which the person receives the proceeds of sale.

(4)If the person receives the proceeds of sale in instalments, one-sixth of the amount chargeable in respect of each instalment is taxed in the tax year in which the person receives the instalment and in each of the next 5 tax years.

(5)The person may elect to be taxed instead on the whole of any instalment in the tax year in which the person receives it.

(6)An election under subsection (3) or (5) must be made on or before the first anniversary of the normal self-assessment filing date for that tax year.