The rescission of property purchase contracts did not constitute a disposal of assets, and forfeited deposits on the rescinded contracts were not allowable losses on disposal.
The appellant funded 10% deposits on the prospective purchase of two properties, both of which were paid on exchange of contracts with the sellers. However, funds were not subsequently available to complete the purchases. The sellers refused to wait until the necessary funds were raised to complete, and rescinded both contracts and retained the deposits.
The appellant realised capital gains on other properties, and sought to offset the loss of the forfeited deposits against those gains. However, HM Revenue and Customs (HMRC) disallowed the loss relief claim for capital gains tax purposes in the appellant's tax return for 2009/10. The appellant appealed.
The appellant argued (among other things) that he became the beneficial owner of
