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Some years ago our client purchased a plot of land from his neighbour. An easement was attached to this plot which required a water supply to be put in to the neighbour’s remaining plot.
This work was never carried out and our client sold his land in 2006/07; we understand that the land has since been sold again.
The neighbour now wants the water supply installed which will cost £3 500.
Our client feels obliged to pay for this but will we be able to claim tax relief?
Our thoughts are that an error or mistake claim might be made in respect of the 2006/07 capital gains tax computation but we should be grateful for Taxation readers’ comments as to how this might be viewed by HMRC.
Query 17 595 – Pipe Dream
Reply from ANA
No error or mistake claim is required. Tax relief is...
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