Feeling the heat

A client is a victim of a ‘boiler room’ scam and holds share certificates in various United States companies which are now believed to be worthless.

During the same year capital gains have been realised in excess of the annual exemption.

Is it possible for relief to be obtained for ‘boiler room’ losses and for these to be offset against the chargeable gains?

The police are fully aware of the details of the scam. Certain advice indicates that no relief is available for the original costs of the boiler room shares on the basis that the shares were of negligible value when acquired.

However it seems to us that they were acquired by our client in good faith and in an arm’s length transaction.

Readers’ views on our client’s chances of at least obtaining tax relief for his losses as a result of this scam would be...