D5. Surrender of rights/assets

- Capital sum for waiver/surrender as a deemed disposal

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- A capital sum received in return for waiving or surrendering a right/asset gives rise to a deemed disposal of that right/asset.

- Bensons Hosiery - a company received a payment in return for waiving its rights under a director's service agreement so as to release the director. Held: this was a capital sum derived from its contractual rights. 

- It was common ground that the sum was capital (at 572). Query whether that was correct. See E2. Trading receipts.

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Legislation: 

Cases: O’Brien v Bensons Hosiery (Holdings) Ltd [1980] AC 562 (HoL);

HMRC manuals: CG13000 - Capital sums derived from assets: s22(1) TCGA92: contractual rights; 

Commentary: 

See also:

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