Property owner loses £100k capital gains tax case

Posted: 20/11/2023


A property owner has lost a strange capital gains tax (CGT) case at tribunal costing him almost £100,000. One Mr Salokun failed to declare gains on the disposal of three properties when completing his self-assessment. He claimed that this was on the basis that the government had effectively told him to sell the properties to help fund his ill wife's care costs and that made him expempt! In fact his local council had merely suggested it to him, not that the reason for sale would have made any difference. He also claimed that one of the properties had been destroyed and that he had no money to pay the CGT as it had been spent on his wife's care costs. The tribunal ruled that he had to pay just over £67,000 in CGT, although they did reduce the £33,000 of penalties that HMRC had charged.

If you sell a property that is not your main residence, it generally becomes liable for capital gains tax, subject to applicable thresholds. Find out more here: 

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