Failed Completion

[Poppy2006]

I am possibly in a situation where the buyer of my foreign property will fail to complete after the contracts have been exchanged and I will retain the deposit. Could you please advise me regarding my tax position? Is the deposit taxable?

Thanks

[maths]

No.

See for a somewhat protracted discussion:

http://www.taxationweb.co.uk/forum/capi ... lit=jerome

[Poppy2006]

Thanks. I am not sure that I fully understand the discussion. My initial worry was that I would have to pay CGT as my assets would increase by the value of the deposit.

But if CGT is not applicable, would I need to pay income tax on the amount?

[maths]

No CGT or income tax.

[Poppy2006]

Thanks.