A client of mine on selling his principal private residence, received a deposit of 10% amounting to just under £50,000.00 on exchange of contracts . However, the buyer could not complete the transaction and has oferred to forego his deposit provided the seller (my client) doesn't pursue the matter any further. Is the £50,000.00 subject to any taxes income and/or CGT ? Any comments are greatly appreciated.
Replies (5)
Please login or register to join the discussion.
Any comments?
OK, the words "Anonymous" followed by "a client of mine" followed by a question with no hint of having tried to answer it or clue as to the point that is causing difficulty in answering it are starting to make my flesh crawl.
Start with TCGA s144 and come back again when you get stuck.
So your issue was whether a gain taxed under s144 would attract PRR? Can you see why I didn't get that from "Is the £50,000.00 subject to any taxes income and/or CGT?"?