Capital gains tax on shares

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My wife foolishly bought the use of an apartment in a hotel, abroad, in January 2022. We only used it 3 times but she owed money on it and also they were charging high maintenance fees. She could not afford to make any further payments because it would have taken all her state pension. The hotel have cancelled the contract due to her being in default and we are now suing them to get part of her money back. If she loses the case can she claim for capital loss against a large gain she is due to make on her shares in a LLP which is due to fold when the LLP's properties have all been sold?

Replies (18)

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By David Ex
22nd Jun 2024 18:00

You need to speak to an accountant who has access to the full facts.

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Replying to David Ex:
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By paulhammett
22nd Jun 2024 18:19

. . . . and probably a lawyer.

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Replying to paulhammett:
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By David Ex
22nd Jun 2024 18:25

paulhammett wrote:

. . . . and probably a lawyer.

Assume they’ve got one of those as OP says they are suing but maybe not.

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By Kosher
22nd Jun 2024 18:53

The way I've read it is you lose money or all your money you can't have a capital loss. But if you sell for more money than you've paid you get taxed on the gain.

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Replying to Kosher:
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By David Ex
22nd Jun 2024 19:13

Kosher wrote:

The way I've read it is you lose money or all your money you can't have a capital loss. But if you sell for more money than you've paid you get taxed on the gain.

Oh, well if you’ve researched then sounds like bad news. Still might be worth speaking to an accountant to confirm your analysis.

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Replying to David Ex:
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By Kosher
22nd Jun 2024 19:44

David Ex wrote:

Kosher wrote:

The way I've read it is you lose money or all your money you can't have a capital loss. But if you sell for more money than you've paid you get taxed on the gain.

Oh, well if you’ve researched then sounds like bad news. Still might be worth speaking to an accountant to confirm your analysis.

I am an accountant but with this I am out of my depth. Could be worth a saving of £6,000
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Replying to Kosher:
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By kaff
23rd Jun 2024 15:25

Not exactly the most detailed summary of TCGA I’ve ever read…..

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the sea otter
By memyself-eye
23rd Jun 2024 12:30

Is - or was - this not a time share contract?
How is that related to losses on equities?

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Replying to memyself-eye:
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By FactChecker
23rd Jun 2024 14:51

I think OP is hoping for a 'gain' not a loss on the equities, but (without further detail) I think you've hit the nail on the head ... as in most Time Shares are not an asset in the first place (i.e. the right to use is rented not bought).

Perhaps more importantly (based entirely on info in original question) the 'asset' doesn't appear to have been disposed of to a 3rd party for a gain or a loss ... the contract was simply cancelled for failure to keep up payments (similar to a vehicle being impounded after HP payments have been missed).
[The basis for "suing them to get part of her money back" is intriguing but unlikely to be relevant to the central question posed.]

So "If she loses the case can she claim for capital loss against a large gain she is due to make on her shares in a LLP which is due to fold when the LLP's properties have all been sold?" ... the answer IMHO (for the above reasons) is no.

On the plus side, it sounds like a major turn-up in OP's woes is around the corner.
It's only a little over 3 months since he was saying that "my wife has lost all her savings to a company who has committed fraud" and "my wife is suing a company for £115,000 for ripping her off. They are the guilty party and they are likely to get done for fraud by misrepresentation" (and no doubt as a result of that stress sent me, and others, extremely abusive DMs).
So here's hoping the future is about to get brighter for him and his wife.

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Replying to FactChecker:
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By Kosher
23rd Jun 2024 23:05

Yes you are spot on with all facts. The timeshare company have got till Wednesday to reply, with their defence, to our solicitors. If they fail it will go to court, the company have broken practically all the timeshare rules. We have just got back from holiday at another hotel in the resort and we've been told that the timeshare company are on the verge of bankruptcy, so we aren't bothered about the capital loss because my wife wants all her money back which is needed for her disablement care package. If she loses then the capital gains tax will be needed for her care package.

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By Truthsayer
23rd Jun 2024 16:06

On the facts as stated, there is no capital loss, merely your wife's failure to make contractual payments.

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Replying to Truthsayer:
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By Kosher
23rd Jun 2024 23:07

You are right but the company have committed fraud.

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Replying to Kosher:
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By Paul Crowley
24th Jun 2024 06:31

Fraud is not a capital loss.

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By Tax Dragon
24th Jun 2024 06:04

S59A TCGA 1992.

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Replying to Tax Dragon:
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By taxdigital
24th Jun 2024 07:47

Tax Dragon wrote:

S59A TCGA 1992.

All that s.59A says is that an LLP's corporate personality will be ignored for tax purposes. What has that got to do with OP's question?

As others have said only an adviser with access to all the paperwork can answer OP's question.

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Replying to taxdigital:
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By Tax Dragon
24th Jun 2024 08:59

taxdigital wrote:

What has that got to do with OP's question?

Let me repeat OP's question for you:

kosher wrote:

If she loses the case can she claim for capital loss against a large gain she is due to make on her shares in a LLP which is due to fold when the LLP's properties have all been sold?

It's so ridiculous that I can understand why you missed it, but OP seems to believe his wife has shares in the overseas accommodation and other shares in an LLP. OP may believe that the gain on the LLP shares arises when the LLP "folds".

taxdigital wrote:

As others have said only an adviser with access to all the paperwork can answer OP's question.

Agreed. So, to stop the thread being completely pointless, I thought it would address an issue we can answer.

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the sea otter
By memyself-eye
24th Jun 2024 10:18

Timeshare 'rules' I like that. There are no rules in timesharing!

Oh, other than 'fleece the gullible'

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By Kosher01
26th Jun 2024 11:25

Yes I know she cannot claim CGT loss relief from her timeshare. We have got a lawyer involved and today it is the last day for the timeshare hotel to answer our lawyer's letter asking them what they are prepared to do about the situation. Failing to do this with land them in court and facing an even higher financial penalty.

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