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?
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