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fraud

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Hi 

i have a client who is in his 80's. He has just told me that after speaking to someone over the phone he has sold his shares (which amount to a considerable sum) and then sent the this person the money thinking that they would reinvest it for him, he has lost all the money the police and bank are involved although he didn't have many details (i have asked him to bring in any paperwork he has so hopefully i can talk to someone to establish the full facts) He is now worried about capital gains tax. 

I cant imagine the revenue will have much sympathy but i wondered if anyone has any experience in a case like this?

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By cohen
30th Mar 2015 18:39

Unfortunately, he has sold the shares, so this has crystalised a gain. 

The fact that he was then conned into transferring the proceeds doesn't change that, and unless the proceeds were actually used to buy an asset that was subsequently stolen or similar, then I can't see that he's got much recourse with HMRC, in getting the gain reduced.

If he has got a CGT liability (presumably he has, given your question), he should certainly make HMRC aware of the circumstances, particularly  if he's going to have a problem in paying, as they might give him some leeway / come to a arrangement to pay over time.

I've had a vaguely similar case, but that involved the actual purchase of an asset that then became of negligible value by being nicked. The only other possible scenario that I can think of might be if he transferred the cash in a different currency, he may be able to claim a loss on the currency as the asset becoming of negligible value, but that doesn't sound like the case here.

 

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