When is the date of disposal for capital gains tax purposes?

For capital gains tax purposes, the date of disposal is typically the date on which the contract becomes unconditional. This is significant because it marks the point at which the seller has committed to transfer ownership of the asset and the buyer is legally obligated to purchase it. This point is crucial in determining the gain or loss for tax purposes, as it establishes the timeline for reporting the transaction.

When a contract becomes unconditional, it usually means that all conditions related to the sale have been satisfied, making the transaction official. This timing aligns with tax regulations that assess gains based on the completion of the obligation rather than merely the moment payment is exchanged or the asset is physically sold. Thus, using the date the contract becomes unconditional provides clarity on when the taxpayer needs to report the capital gain or loss.

In contrast, the other options reference different milestones in the transaction process that may not necessarily define the legal moment of disposal for tax purposes. For example, simply selling the item does not finalize the legal obligations without the contract being unconditional.