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Posted Mon, 21 Nov 2022 22:47:30 GMT by Ami wo
Dear HMRC team, I would appreciate some advice on the following: Given: X is a EEA national and a UK tax resident. In 2009 X bought a property in Spain. It turned out to have a too-costly-to-repair structural damage which the vendor had known about. X got a lawyer for either rescinding the purchase agreement or claiming the costs from the vendor. The lawyer's negligence led to elongating the process (it lasted years!!) and the loss of opportunity to rescind the purchase agreement or get any compensation from the vendor. X started the lawsuit against his lawyer whose negligence has been established in the court. In 2021 (May) X received the compensation for his lawyer's negligence. In 2022 (July) X sold the property. X has received a draft of Tax return for 21-22 from his Tax advisor and the following appears in Capital gains disposal summary: Asset type: other property, assets and gains Asset name: apartment Date of acquisition: 01/12/2009 Date of disposal: 01/05/2021 Is it me or X's Tax advisor is mixing up the property sale with the negligence claim compensation? So sorry for the long read!
Posted Wed, 23 Nov 2022 15:11:16 GMT by HMRC Admin 32

We cannot comment on this scenario. You will need to seek professional advice on this matter.

Thank you.

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