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    • an1179
    • By an1179 10th Jan 18, 8:26 AM
    • 1,688Posts
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    an1179
    Self employed tax return and cash capital introduced
    • #1
    • 10th Jan 18, 8:26 AM
    Self employed tax return and cash capital introduced 10th Jan 18 at 8:26 AM
    Hi

    A self employed small business I had to put some of my own cash into the business as it is making a loss. I have put it into capital introduced on my ledger. I know this is not a tax income/expeniture item

    I am showing a loss in profits which I know I put on my tax return.

    My questions

    if I keep introducing cash capital will it will come off the capital gains tax when the business is sold? I know that I can withdraw this cash if it becomes available

    Do I need to include it on my online tax return and if so where please?

    Thank you
Page 1
    • Pennywise
    • By Pennywise 10th Jan 18, 8:54 AM
    • 9,608 Posts
    • 17,666 Thanks
    Pennywise
    • #2
    • 10th Jan 18, 8:54 AM
    • #2
    • 10th Jan 18, 8:54 AM
    if I keep introducing cash capital will it will come off the capital gains tax when the business is sold? I know that I can withdraw this cash if it becomes available
    Originally posted by an1179
    No, capital gains tax will always be on the sale proceeds, less purchase price, less incidental costs.

    What you're doing is subsidising the trading losses. That's trading, not capital. You get tax relief for the trading losses against future profits or against other taxable income. As you rightly say, you can withdraw your introductions, tax free, at some future time, once the business is profitable again.

    Capital and trading are completely different things.
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