Clogged Losses

Clogged Losses

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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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By buttinski
24th Oct 2014 14:50

I believe

 so, and that the clogged loss can only be set off against gains made from transactions with the same connected person.

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By johngroganjga
24th Oct 2014 15:02

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?

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Replying to Matrix:
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By buttinski
24th Oct 2014 15:06

My understtanding is that

Clogged losses are capital losses arising from transactions with connected parties.

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By johngroganjga
24th Oct 2014 15:31

Yes I see.  A confusion in

Yes I see.  A confusion in terminology threw me.

Yes I agree that the loss here is clogged.

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By Di
25th Oct 2014 14:03

Thanks for input

So there's no way the loss will ever be relieved- shame.

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