These instructions tell you when a Capital Gains Tax liability would arise when a building society terminated an agency and made an ex-gratia or compensation payment to the agent.

Ex gratia payments

You can accept that no Capital Gains Tax liability arises in respect of ex-gratia payments made by building societies on the termination of agencies. The normal course of events leading up to such payments would have been

the agency agreement provides that either party may terminate the arrangements by giving notice but there is no provision for compensation to be paid for the loss of the agency

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