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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 16308
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Tax question for please

Customer Question

Tax question for Sam please
Submitted: 16 days ago.
Category: Tax
Expert:  Sam replied 16 days ago.

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

Expert:  Sam replied 16 days ago.

Hi

How can I assist ?

Thanks

Sam

Customer: replied 16 days ago.
I have come into some compensation regarding a failed property development deal. Would I need to pay tax on that?
Expert:  Sam replied 16 days ago.

Hi

I need more information please

Who paid the compensation

How did it become due (so why)

Was any tax deducted from it

Thanks

Sam

Customer: replied 16 days ago.
The developer did not handover the property on time as agreed in the contract. Per the contract there was compensation due. No tax was deducted from it
Expert:  Sam replied 16 days ago.

Hi

So what loss did you incur due to this delay ) i still don't understand why you were awarded any compensation ???? What out of pocket costs did you incur as a result of this delay ?
Thanks

sam

Customer: replied 16 days ago.
I did not receive the property on time which meant I lost out in the rental income for it for 18 months
Expert:  Sam replied 16 days ago.

Hi

That's not a considered claim as most people buy with a view to live in a property

your choice to rent is a personal one

So it was paid due to loss of rental income - is that what the legal documentation states ?

Thanks

Sam

Customer: replied 16 days ago.
No it was paid on the basis that the developer did not hand over the property at the time that they expected it to be handed over
Customer: replied 16 days ago.
The contract talks about delays in the handover of the property and what would happen in those circumstances
Expert:  Sam replied 16 days ago.

Hi

then if you had a contractual right to receive it then its liable to tax usually as you were not out of pocket as such

Thanks

Sam

Customer: replied 16 days ago.
Ok thank you
Customer: replied 16 days ago.
Where can I find this in the tax manual please?
Expert:  Sam replied 16 days ago.

Hi

You are welcome

in the income tax manual

Thanks

Sam

Customer: replied 16 days ago.
Ok
Customer: replied 16 days ago.
Thank you
Expert:  Sam replied 16 days ago.

You are welcome

Thanks

Sam

Customer: replied 16 days ago.
I’ve just seen. Are you an officer of HMRC?
Expert:  Sam replied 16 days ago.

I was from 1982 to 2008 then ive traded as an tax consultant from 2009 to date

Thanks

Sam

Customer: replied 16 days ago.
Oh ok that’s great. Lots of experience then!
Expert:  Sam replied 16 days ago.

Hi

OH yes for sure !

Thanks

sam

Customer: replied 16 days ago.
Thank you for your time. May have to come back to you with another query
Expert:  Sam replied 16 days ago.

Hi

Yes of course

On any post just state in your opening sentence that you wish Sam to answer and any other experts that answer just say you would prefer to wait (if you want to of course !)

Thanks

Sam

Customer: replied 16 days ago.
thank you have done so
Expert:  Sam replied 16 days ago.

Perfct

And do remember to take the time rate my answers please (top of the page) and any bonus is always welcome

thanks

Sam