Thank you for your views Ms Grimmer, TaxDragon and Ruddles.......very helpful. I think I will make a belated notification of the capital loss to HMRC, by submitting an amended return for 2012/13, and take it from there.
I agree....it is simply a balance sheet movement and is not tax deductible. No repair has been incurred, so nothing to deduct there, nor is such a provision tax deductible.
Look at HMRC's examples of deliberate behaviour in their Compliance Handbook section 53800. Then consider whether your client acted in similar manner. If you can demonstrate that your client did not conceal or avoid his responsibilities deliberately then his actions may have only been 'careless' in which case it's 6 year of tax returns to complete.
However I cannot see any restriction of ER in HMRC's manuals based upon not 'retiring' from a specific type of business. Doesn't the following extract support my client's intended claim....
'Entrepreneur's relief may be claimed on more than one qualifying disposal as long as the lifetime limit of qualifying gains, applicable at the time you make the disposal, is not exceeded'.
Sorry Andy, just to clarify.......it is as John has described above; the developer (father) has given up the chance to make a profit on the land. Historically his company has always bought the land and built the houses/apartments, until now when his children are involved.
My answers
Thank you all, for your views.
Thank you for your views Ms Grimmer, TaxDragon and Ruddles.......very helpful. I think I will make a belated notification of the capital loss to HMRC, by submitting an amended return for 2012/13, and take it from there.
I agree....it is simply a balance sheet movement and is not tax deductible. No repair has been incurred, so nothing to deduct there, nor is such a provision tax deductible.
DocuSign is pretty good
I gave up ringing HMRC years ago, I was fed up waiting, waiting to be told what I already knew/surmised.
Look at HMRC's examples of deliberate behaviour in their Compliance Handbook section 53800. Then consider whether your client acted in similar manner. If you can demonstrate that your client did not conceal or avoid his responsibilities deliberately then his actions may have only been 'careless' in which case it's 6 year of tax returns to complete.
Thank you for your comment
Thank you for your comment Portia (Miss Jones I see!)
Hi NewACA,
Thanks for your response.
However I cannot see any restriction of ER in HMRC's manuals based upon not 'retiring' from a specific type of business. Doesn't the following extract support my client's intended claim....
'Entrepreneur's relief may be claimed on more than one qualifying disposal as long as the lifetime limit of qualifying gains, applicable at the time you make the disposal, is not exceeded'.
Many thanks for your comments.
Sorry Andy, just to clarify.......it is as John has described above; the developer (father) has given up the chance to make a profit on the land. Historically his company has always bought the land and built the houses/apartments, until now when his children are involved.