Consideration in loan notes on a business sale that becomes irrecoverable

An individual sold a business some years ago and was paid partly in cash and partly in loan notes in the sold business. The loan notes paid a fixed rate of annual interest and were repayable in several equal annual tranches. The company initially defaulted on the repayments but continued paying the interest for a while. It paid additional interest on the capital that was overdue for repayment. A few years later, the individual accepted a final settlement (well below what they were owed originally) and the loan notes were extinguished. The rest of the consideration became irrecoverable at this point. This was several years after the tax year in which the business sale took place. Can they reclaim part of the CGT they paid in respect of the loan note consideration originally, under section 48 of Taxation of Chargeable Gains Act 1992?

Hi Sam.
The clock starts ticking for a valid S48 claim from the time at which the consideration becomes irrecoverable.
They have 4 years from that date to make a claim.
Please refer to:
CG14933 - Deferred consideration: ascertainable: claims that consideration is irrecoverable
Also
CG14930 - Deferred consideration: ascertainable: consideration irrecoverable
Thank you. 

Thanks. I was under the impression it was 4 years after the end of the tax year in which the consideration became irrecoverable, per https://www.legislation.gov.uk/ukpga/1970/9/section/43? "Subject to any provision of the Taxes Acts prescribing a longer or shorter period, no claim for relief in respect of income tax or capital gains tax may be made more than 4 years after the end of the year of assessment to which it relates."

Hi,

That is confirmed in the links sent in the previous reply.

Thank you.

Hi, Thanks for clarifying that it is 4 years after the end of the tax year, that is really helpful.