Can I offset losses from a bad Spanish property deal?Make Text Bigger
Some time ago I went to Spain to buy a flat off plan with a view to selling it on for a profit once the build completed or perhaps to let it out.
I used a couple of different agents to source a flat and agreed to buy. Contracts were drawn up and we paid 30 per cent deposit (about £50k) with agreed staged payments to be made towards completion.
Then it all went wrong. In short the developer went bust and we were told we will never see the deposit we paid again. There was no point in proceeding with any completion as the flat at that point was not worth the amount we agreed to pay for it so we reluctantly decided not to proceed further and accepted the loss of deposit.
I thought that I could offset the loss of the deposit against my other BTL income from UK property but my accountant says the tax man would not accept this as we had only paid a deposit on the property and had not actually completed the purchase, therefore we never owned the property.
Is this correct please ?
Look forward to your replies, thanks
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