Posted: 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?
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?