Fishing vessel and associated tonnage were sold on date of contract for CGT purposes

The Court of Appeal dismissed an appeal from the High Court, and affirmed a decision that a Memorandum of Agreement for the sale of a fishing vessel and its associated capacity tonnage was an immediately binding contract, not subject to any conditions precedent that would defer its effect. Consequently, the "date of disposal" for Capital Gains Tax (CGT) purposes occurred on the date of the contract, not the date of completion. The appellant's contention that the contract was conditional and that the disposal occurred in 2016, not 2015, thus qualifying for entrepreneurial relief, was rejected. The court found no evidence of a condition precedent that would prevent a binding contract from existing upon execution, and the steps required prior to completion did not render the contract "conditional".