CGT and basic loss payments


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

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

Read about it here:

http://www.opsi.gov.uk/acts/acts2004/ukpga_20040005_en_13#pt8-pb6-l1g106

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
pawncob
 
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Location: West Sussex

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

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


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