Capital gains losses

cccs1986

Wonder if someone can advise me about this:

I made a loss of around £8000 on some shares in a company that went bust. They were purchased on www.share.com where no certificates are given and in 2004 the shares were suspended. I did not record this loss on my tax return, but I'm about to make a profit on the sale of a property. No notification was sent that they'd gone bust - it just shows £0.00 on my account.

So let's say I make £50000 profit on the house sale, is my CGT liability as follows:
£50000 - £8000 (share loss) - £10100 (CGT allowance)
= CGT on £39000

many thanks

harryhound

When did you tell HNRC you had made a loss?
When did the company officially become of negligible value?

http://boards.fool.co.uk/MessagePrint.aspx?mid=12085561

cccs1986

harryhound wrote: »

When did you tell HNRC you had made a loss?
When did the company officially become of negligible value?

http://boards.fool.co.uk/MessagePrint.aspx?mid=12085561

That's the trouble - I haven't notified HMRC about the loss. How do you find out the exact date a company is dissolved?

Thanks

harryhound

http://www.hmrc.gov.uk/manuals/svmanualnew/svm107150.htm
http://www.hmrc.gov.uk/cgt/negligible_list.htm
http://www.hmrc.gov.uk/cgt/negvalist.htm

cccs1986

harryhound wrote: »

http://www.hmrc.gov.uk/manuals/svmanualnew/svm107150.htm
http://www.hmrc.gov.uk/cgt/negligible_list.htm
http://www.hmrc.gov.uk/cgt/negvalist.htm

Thanks for the links. Sadly the company in question is not listed which is odd since it was definitely listed on the LSE.

ceeforcat

That is not to say that it won't at some stage - can take some time to gain the dubious distinction of having negligible value. Keep checking.

taxing

Hi

Note the final parargraph re Neglible Value of Quoted shares & Securities

If you agree for the first time that shares in a formerly quoted company have become of negligible value you must notify Information Support who will arrange for the negligible value list on the Internet to be updated.

This is an instruction to the tax officer from 'HMRC' (remember, these are HMRC internal manuauls for use by HMRC staff) - and it demonstrates that in order for a company to be put on the 'list' someone (that is a 'taxpayer') has to start the ball rolling by making a claim.

Provided you still have the shares which are still worthless, you can make a claim on your tax return but you will need to be able to provide proof to HMRC that the shares are worthless.

Did you get anything from the Liquidator about your shares - was there anything posted on the web page to say in Liquidation etc etc...so, you can blaze the trail and claim provided you can offer proof if challenged.

Regards

jimmo

You can find out (free of charge) from Companies House if the company has been dissolved and if so, the date of dissolution.
I've never done it so I don't know what else you can get for free but here is a link.
http://www.companieshouse.gov.uk/toolsToHelp/WCInfo.shtml
If it has been dissolved it will be possible to look at time limits and see whether you can make a valid claim for your losses.
If it hasn't been dissolved there is every chance that you can make a negligible value claim.
Let us know what you find out.

cccs1986

jimmo wrote: »

You can find out (free of charge) from Companies House if the company has been dissolved and if so, the date of dissolution.
I've never done it so I don't know what else you can get for free but here is a link.
http://www.companieshouse.gov.uk/toolsToHelp/WCInfo.shtml
If it has been dissolved it will be possible to look at time limits and see whether you can make a valid claim for your losses.
If it hasn't been dissolved there is every chance that you can make a negligible value claim.
Let us know what you find out.

Thanks jimmo
I have found the company and it is listed as Dissolved on the Companies House website on 21/07/09. So am I too late to claim this as a loss on a slef-assessment, and off set against future CGT gains?

Regshoe

cccs1986 wrote: »

Thanks jimmo
I have found the company and it is listed as Dissolved on the Companies House website on 21/07/09. So am I too late to claim this as a loss on a slef-assessment, and off set against future CGT gains?

Take a look at:

http://www.hmrc.gov.uk/cgt/intro/losses.htm#3

Table indicates that for losses in 09/10 you have until 5th April 2014.

cccs1986

Regshoe wrote: »

Take a look at:

http://www.hmrc.gov.uk/cgt/intro/losses.htm#3

Table indicates that for losses in 09/10 you have until 5th April 2014.

Thanks - lots of helpful people around here!

One final question - if my losses in say 07-08 were £7500, can they be offset against CGT this year, or is it only possible to offset losses ABOVE the Annual Exemption of £10,100?

Cheers