CGT and basic loss payments

Postby Heaton on Tue Sep 09, 2008 6:24 am

One of my rental houses is in an area that a local council wished to apply a compulsory purchase order to. This failed, but through a housing renewal fund, we were all strongly encouraged to sell up to the council. The final payment included a 'basic loss' payment of 7.5% of the market value, as a landlord with a qualifying interest in the freehold.
Can anyone please tell me whether the basic loss payment comes within CGT rules or is this 'income' of some other sort?
Posts: 11
Joined: Wed Aug 06, 2008 3:39 pm

Postby pawncob on Tue Sep 09, 2008 12:07 pm

Read about it here:

It looks like it's a capital payment, so it's within CGT.
With a pinch of salt take what I say, but don't exceed your RDA
Posts: 3168
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Postby Heaton on Wed Sep 10, 2008 12:08 am

Thank-you - much appreciated!
Posts: 11
Joined: Wed Aug 06, 2008 3:39 pm

Return to Capital Gains Tax

Dorifor Internet Marketing Dorifor Tax Group - our portfolio of tax sites:

UK's largest independent tax portal All the tax books on one site global tax seminars, conferences and other events Global tax jobs portal List of UK recruitment agencies and employers