PART 2THE TAX AND KEY CONCEPTS
CHAPTER 3PARTICULAR TRANSACTIONS
Substantial performance
I114Meaning of substantial performance
1
A contract is substantially performed for the purposes of this Act when—
a
the buyer, or a person connected with the buyer, takes possession of the whole, or substantially the whole, of the subject-matter of the contract, or
b
a substantial amount of the consideration is paid or provided.
2
For the purposes of subsection (1)(a)—
a
possession includes receipt of rents and profits or the right to receive them, and
b
it is immaterial whether possession is taken under the contract or under a licence or lease of a temporary character or a tenancy at will.
3
For the purposes of subsection (1)(b), a substantial amount of the consideration is paid or provided—
a
if none of the consideration is rent, when the whole or substantially the whole of the consideration is paid or provided;
b
if the only consideration is rent, when the first payment of rent is made;
c
if the consideration includes both rent and other consideration, when the first of the following events occurs—
i
the whole or substantially the whole of the consideration other than rent is paid or provided, or
ii
the first payment of rent is made.