Marren v Ingles [1980] 3 All ER 95

A contingent right to receive a further sum is a chose in action and thus an ‘asset’.

Ingles agreed to sell 60 shares in a private company for £750 per share payable immediately plus a liability to pay additional consideration (calculated by reference to future profit levels) subject to certain contingencies.

• The contingencies were satisfied two years later and a further £2,825 per share became payable.

The Crown contended that the contingent right to the further payment was a separate asset. 

Held, the taxpayer's right to the deferred consideration was an 'asset' within s22(1) Finance Act 1965.

• The payment of the deferred consideration to the taxpayer was a capital sum derived by him from that asset.

• Furthermore where a capital sum was derived from an asset there was a disposal of the asset under s 22(3) whether or not the person paying the capital sum had acquired the asset (disagreed with Walton J).