J A Thornton v HMRC

Cathya Djanogly

In J A Thornton v HMRC [2016] UKFTT 767 (16 November 2016) the FTT found that a settlement paid to a landlord as compensation for the dilapidation of his flats was a capital receipt.

The lease of an apartment block known as Jordan House which had previously been between Silk Estates and Albyn Housing Society was assigned to Mr Thornton. The tenants were responsible for the upkeep of the flats but they failed to comply with their responsibility. Although the flats were vacant for a year as they were no longer fit for habitation Albyn Housing continued to pay the rent. Negotiations also took place with a view to reaching a settlement so that the lease would be terminated and Mr Thornton could take possession of the flats to prevent further disrepair. These resulted in the payment of a £250 000 settlement to...

If you are not a subscriber, subscribe now to read this content.

If you are already a subscriber, sign in

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.

Once you have registered, you will receive an email directing you back to read this article in full.