If you have to sell a property to your brother under the terms of a court order and a capital loss arises, does this mean that the loss is clogged and there is no way to obtain loss relief? If so it seems very unfair!
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I believe
so, and that the clogged loss can only be set off against gains made from transactions with the same connected person.
I thought clogged shares were those acquired by employees which had restricted disposal rights. I am not sure how the circumstances you describe are the same as, or even analagous to, those. What am I missing?
My understtanding is that
Clogged losses are capital losses arising from transactions with connected parties.
Yes I see. A confusion in
Yes I see. A confusion in terminology threw me.
Yes I agree that the loss here is clogged.