New queries, issue 4321

Capital compensation

In January 2007 a married couple placed £350 000 with a large financial institution relying on its expertise to choose an appropriate investment. By October 2008 the chosen investment had a surrender value of about £200 000.

The couple complained and in March 2011 without any court action being involved a capital payment of £91 000 was made to them.

I should be most grateful if readers could provide some practical advice and assistance in applying the correct capital gains tax principles to the original investment and the £91 000 in such circumstances.

I have considered TCGA 1992 s 22 the Zim Properties case extra-statutory concession D33 and TCGA 1992 s 51(2). I do not think...