Tax and income on a Building Burnt down

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    Tax and income on a Building Burnt down

    Hello All

    The building I had a flat in burnt down.

    I am being paid rent from the insurance company and I have had an offer to settle from the freeholders (Camden) by buying me out.

    Do I pay Capital Gains tax on this type situation and also do I pay tas on the insurance rent?

    Incidentally, would I need a surveyor or solicitor to negotiate the price?

    Sorry if too many questions, but I have suffered anxiety for over a year on this. Grateful for any help you may have.

    #2
    Were you living in your own flat in a council owned block of flats ? and was the flat rented to a tenant ?

    Comment


      #3
      Why start another thread?
      I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

      Comment


        #4
        So that many people can spend many minutes re-establishing all the details he's given in the previous threads :-(.

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          #5
          Oh dear I have I have not upset people, I may have two user names. Not being young any more my mind is not what it was. Apologies.

          Thank you for replying Gordon. The flat was a Camden Victorian freehold conversion and I was the Landlord. Some of the flats had Camden tenants,a few were owner occupied.

          Let me know if you need more information. I am not well and may a few weeks to acknowledge. I will do my best.

          Regards

          Comment


            #6
            Is there any date for accepting the offer to buy you out ? You should check with other flat owners to see if there is general acceptance of the offer. You can speak to some local estate agents about approx current valuation for a comparable flat ( 1 bed or 2 bed flat ) in your street . Are the other flat owners using a surveyor to get higher valuation ? or using same solicitor to handle the conveyancing ?

            If you were not living there when the fire occurred, the insurance rent is treated same as rent paid by the tenant and the rent must be reported on your annual tax return.

            Yes, I think the capital gains tax will apply to the "capital gain" which can be reduced by the "period under owner occupation + 18 months " and by the annual allowance of about £11,500.

            Comment


              #7
              Thank you so much for your prompt reply.

              There is no date given, I have been told by Camden that they will be coming back to me. Unfortunately the other lessees never bothered to communicate over the years that I tried to get an association going. One did for a short while and then I received no more replies to my emails, so I am on my own.

              Thank you so much for the information in the last two paragraphs, I was not living there as my tenant was.

              To my original question, would you think I should go to a solicitor or straight to a surveyor?

              Best
              Alan

              Comment


                #8
                I think you should consult a surveyor first and seek advice if the compensation offer is fair and matches the value assessed by the District Valuation Office .

                Comment


                  #9
                  That's kind of you Gordon, that's what I will do.

                  Best regards

                  Alan

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