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Banking a loss

12 October 2010
Issue: 4276 / Categories: Forum & Feedback
A property was purchased in the USA in 2004 and sold in 2010 at a £200,000 loss. The US lender has agreed to waive the mortgage balance of £160,000. It is confirmed that the mortgage ‘gain’ is not set against the loss on the property and it is unlikely that the waiver would be subject to income tax in the UK.

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