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Is a fraudulent sale of assets, later reinstated, a capital gains tax disposal?
Our client holds a significant share portfolio with a reputable stockbroker/investment manager.
In June 2013 he was the victim of fraud and as a result his portfolio was liquidated in full at the instruction of the fraudster without any knowledge of our client. We believe that the fraudster benefited from the act but we are unsure of this. We are also uncertain as to the exact follow-on action taken by the stockbroker.
On discovery of the fraud the stockbroker agreed to restore our client’s portfolio to the exact shareholdings as they were held immediately before the fraud took place.
There was a gap of about seven months before this restitution was made but because of the corrective action by the stockbroker our client suffered no investment loss in terms of capital value or income entitlement.
Would this constitute a disposal of the original...
