loads made to a limited company which goes bust?

stressed_mummy

a really silly question.....
is there any way of recovering any tax where as a director we have made loans to a limited company which in turn goes bust (not for the want of trying?)

all the money we loaned we would have paid ni & income tax on

James_Trimby

HI There are tax reliefs available but they are not always very useful. IF the moneys went in as share capital and the company meets certain criteria which normally ok for a small trading co, then in tax year of loss you can offset the loss against any income (salaries for instance)

However if the monies where loaned you will end up with a Captial Gains Tax loss. you need to claim this with the Revenue. The problem is that capital gains losses are only available to reduce capital profits, which for most people is pretty much useless. BUT if you have BTL or second home or large share portfolio etc might be worth claiming the loss is carried forward until used without time limit. (this way, at moment, you are only looking at saving a max of 18% this way anyway), and losses are automatically offset before your annual allowance for gains so unless a big gain is made it tends to be wasted anyway.
Sorry not good news but hope this helps

stressed_mummy

Many thanks James
I'll pass this over to OH yes it was a small biz less than 5 employees
its just such a lot of money to lose
the trouble was unknown to us old company staff (we bought assets from a company that went bust) used us as a cash cow & walked away with stolen stock .............