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tax on property competition?

tax on property competition?

I have been asked a question - a lady owns a property (investment) which she wishes to sell (as she is losing money). She would like to run a competition to get rid of the property - presumably only if she sells enough tickets. My gut feeling is that there are two transactions - running a competition at a profit (tax and ni on any profit) and a seperate capital gains tax transaction (for zero proceeds?). Hmm not sure.

The question is - what are the tax implications?

can anyone answer this one; thanks, Nick
Nick Paulley

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16th Oct 2008 18:02

No suggestion that it was
I was not suggesting that it was Michael - I thought however that as the draw which was the subject I believe of the original post on this topic last month had been stopped on legal grounds it was an interesting point to draw attention to & also clearly shows that action will be taken by the relevant authorities.

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16th Oct 2008 15:30

Follow Up
The BBC link was not the source of my information. I actually read an article in which a QC made the comments related by me.

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16th Oct 2008 12:07

Following on from Michael's comment
and the origin of the earlier post, look at this item on BBC news:

http://news.bbc.co.uk/1/hi/england/devon/7673461.stm

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15th Oct 2008 17:10

More Importantly and be careful
I have seen a legal view that such schemes may well be an illegal
lottery as they are not properly licensed. You need to research this point
before you even think of the tax aspects. I would suggest that you seek
legal advice.

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15th Oct 2008 14:57

similar point came up last month
see here
http://www.accountingweb.co.uk/cgi-bin/item.cgi?id=188109&d=1031&h=1021&f=1026&dateformat=%25o%20%25B%20%25Y
Hope I got the link right!

Headed "competition to win a house"

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