Hi,
I’m looking at a situation where financial compensation has been given after it was deemed as bad investment advice.
These were investment LLP’s (not pensions).
Income element on the deemed interest is fine and has been deducted but i’m not sure how to approach the CGT.
Thoughts are that if £50k capital compensation was received on an initial investment of £30k that there is a £20k gain. There has been no loss/initial cost etc claimed in respect of the disposal of the investment to date. With it being an LLP though it doesn’t seem as simple because small losses/ gains have been made on the partnership share as things have been sold in the partnership. Having researched I can see you can opt to use base cost against compensation rather than disposal of the asset but i’m not sure how this interacts with the LLP disposing of things.
Anyone have any experience of this? TIA!
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