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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!
Thank you so much for such a prompt reply, HMRC Admin 20.
Filling in my first return this year and I have a couple of doubts.
I am on page 5 of the return.
1. The total turnover for my business is "£ 19256.72" but when I insert this amount in a corresponding field it gets rounded down to a £19256. Is it the way it is supposed to be?
2. I am claiming a £1000 trading allowance, and I realize that I can't deduct any expenses but the question below reads 'How would you like to record your expenses?' with a 'as a single total value" ticked by default.
Providing that I don't put anything in a "Total allowable expenses", is it supposed to be like this?
Thank you so much!