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Time of disposal.
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10.—(1) (a) Subject to subsection (3) and paragraph (b), where an asset is disposed of and acquired under a contract, the time at which the disposal and acquisition is made is the time the contract is made, (and not, if different, the time at which the asset is conveyed or transferred);
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(b) if the contract is conditional (and, in particular, if it is conditional on the exercise of an option), the time at which the disposal and acquisition is made is the time when the condition is satisfied;
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(c) where an interest in land is acquired, otherwise than under a contract, by an authority possessing compulsory purchase powers, the time at which the disposal and acquisition is made is the time at which the compensation for the acquisition is agreed or otherwise determined (variations on appeal being disregarded for this purpose) or, if earlier, the time when the authority enter on the land in pursuance of their powers.
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(2) A hire purchase or other transaction under which the use and enjoyment of an asset is obtained by a person for a period at the end of which the property in the asset will or may pass to that person shall be treated for the purposes of this Act, both in relation to that person and in relation to the person from whom he obtains the use and enjoyment of the asset, as if it amounted to an entire disposal of the asset to that person at the beginning of the period for which he obtains the use and enjoyment of the asset, but subject to such adjustments of tax, whether by way of repayment or discharge of tax or otherwise, as may be required where the period for which the person has the use and enjoyment of the asset terminates without the property in the asset passing to him.
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(3) For the purposes of subparagraphs (i) to (iv) of section 8 (2) (a), the time of the disposal shall be the time when any capital sum is received.
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