[CG12060] Chargeable assets: intangible assets: rights of action
Rights of action as assets
The case of Zim Properties Ltd v Proctor, 58TC371, established that a right to take court action for compensation or damages is an asset for CG purposes.
In that case a company sued its solicitors for negligence on the grounds that an agreement for the sale of an interest in land had fallen through due to errors in the sale contract. The company received a capital sum under the terms of an out of court settlement.