CG12998 - Capital sums from assets: rights of action: not wasting assets

A right of action is not a 'wasting asset'. The definition of that phrase in the opening words of TCGA92/S44 (1) has to be taken in the context of that Section as a whole. The concept of Section 44 is of assets which, as a matter of fact, depreciate in value over the period of their predictable life, assuming this to be fifty years or less, see CG76721+. A right of action, on the other hand, will be just as valuable on the day before it is settled or becomes time barred as it was when it came into existence.

The fact that the quantum of the compensation may not be known until the right is settled does not affect this. In the UK-Foreign Government compensation agreement cases, for example, claims for specific amounts had to be made to the Foreign Compensation Commission, see CG78710. The exact amount due to each claimant was not actually known until the date claims became time barred.