Capital Gains and Losses?Make Text Bigger
Hi I decided to sell one of my BTLs – I had four. I purchased the property in 2004 so have made a gain once I have taken off costs, and the annual allowance I will still have a tax liability.
However, I also own a property in Southern Italy which despite being in an idyllic location on an unspoiled beach the area is held back by certain organisations /families. I have owned the Apartment for 10 years and in that time the complex has been seized by police (the apartments that are ‘owned’ were ‘handed’ back) but half were still owned by the builder who was arrested for being a member of a well known ‘family.’ The electricity was cut off and the pool has never been completed.
Believe it or not I did my due diligence and used a regulated UK lawyer who later it turned out was not exactly honest (yes I did take him to the SRA but they just gave him a slap on the hand and told him to get me my fees back as he had not done a good job!! no redress for him advising that I sign the contract!)
So whilst it is a lovely area, and we have had some great holidays it is a headache, so I have had it up for sale on the internet for 3 years and a sign on the apartment (Estate Agents don’t operate in Calabria in the same way as here and there is no way I would trust them anyway) It is advertised for half what we paid but even at this price we have had no interest at all.
The builder has since been released and is obviously trying to sell his so there is little chance of selling mine so right now I would say this property is worthless and I can’t even give it away but it appears there is no method to declare this to the HMRC to crystallise the loss.
Has anyone ever had a similar situation ? any thoughts welcome (apart from ‘well what did you expect buying in Southern Italy…… I say that to myself everyday !)
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