I have a self employed flooring contractor who purchased a property in 2014 to refurbish and sell on, which he did so in early 2016.
The client included the gain in his 2016 Return and paid the CG liability arising.
In 2018 the new owner of the property lodged a claim against my client because Japanese Knotweed was discovered in the garden. My client could not produce a survey showing that the property was Knotweed free. After 18 moths of 'discussions' my client's solicitor recommended an 'out of court settlement' was the 'best' basis of settlement. The 'agreed' amount of compensation was a little over £51,000, which my client duly paid.
There was no mention of the legal action until I commenced work on the 2019 accounts. My client is continuing in self employment.
Is it possible to claim relief in respect of the £51,000 compensation and if so how, please.