I have a client who has signed contracts with a building company a few years ago for a new build property currently being built. The agreed price was £200k and he put down a £20k deposit to secure it.
They have not completed the sale yet as they only complete after the property has been built and ready for use. The building company have now offered to take back the property from him, giving him back his deposit plus an extra £50k.
I assume normal capital gains tax will apply in this instance or is there anything specific i need to be aware of. Technically he has never owned the property as they never completed, he only secured it with signed contracts. Now he has this offer he is going to take it up and run with the money.