CGT and forfeited deposits

With some parts of the property market slowing, trustees may have to consider the implications of an agreed sale not taking place. Trustees who have contracted to purchase property would no doubt have prudently ensured that the necessary funds are available, and would proceed to completion of the contract rather than risk future litigation, on top of the forfeiture of any deposit paid. It is more likely that trustees will have to address the issue of an uncompleted contract as sellers, rather than buyers of property. Readers may nevertheless find some interest in the report of a case in which the taxpayer, who had entered into but failed to complete, the purchase of a property, sought to mitigate his financial losses by arguing that the forfeiture of the deposit he had paid gave rise to an allowable loss, in Hardy v Revenue And Customs [2016]UKUT 332 (TCC).