The First-tier Tribunal (FTT) delivered its judgment in C Drake v HMRC  UKFTT 25 (TC). The facts of the case were quite straightforward. The taxpayer entered into a contract for the lease of land under which, at completion, he was to be granted a lease of a property (still under construction at the time of the contract) in return for payment of a premium of £2.2m. A 20% deposit was payable by him on the date of the contract, and a 10% stage payment was payable one year later, both as advance payments of the premium. The taxpayer defaulted on payment of the stage payment; this was a repudiatory breach, and the contract never completed. The issue in the appeal was whether the taxpayer had an allowable loss for the purposes of capital gains tax equal to his lost deposit.
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