Are these Investment Recovery firms for real?

bingle

We had a small amount of shares in a local firm that went into liquidation in December. We have had a few letters from Investment Recovery Solicitors telling us they can recover some of our investment. Is this true or a scam?
If it is true, is it better to do it oneself in order to avoid the 25% fee?!
Again, if it can be done through a tax return etc, can someone please help by explaining how to do it?

MAny thanks.

heathcote123

bingle wrote: »

We had a small amount of shares in a local firm that went into liquidation in December. We have had a few letters from Investment Recovery Solicitors telling us they can recover some of our investment. Is this true or a scam?
If it is true, is it better to do it oneself in order to avoid the 25% fee?!
Again, if it can be done through a tax return etc, can someone please help by explaining how to do it?

MAny thanks.

Smells like a scam to me, if there is money left in the company, suppliers & shareholders should get a slice legally anyway. I'm guessing the liquidators documents are public record, so thats where they will have got your details. A loss can be written off your tax return against profit anyway.

No harm in speaking to them though and hear how they propose to do it - though don't give them a penny up front.

atush

you just need to contact the admisnistrators and make sure you are listed as a shareholder in case there is anything left to distribute.

Biggles

It's a scam.

Generally, shareholders end up getting nothing after all the creditors have been paid.

And if there is anything, you will get it automatically, but it will probably take a year or two.

Ignore them.

bingle

Thank you for that... Still bit confused whether you put it on tax return on next year as loss or do nothing. They say they can get upto 1/4 back.. maybe , like heathcote123 suggests, it is worth a phone call to gather info and no more then see if can do it ourselves.

Biggles

The info's probably in the public domain but they would charge you before telling you anything useful.

There are rules on exactly when you can claim it as a loss; the liquidation process is a long one, and it certainly won't be allowable in the current tax year if it only started in December. Until then, you just have to wait (as would the 'investment recovery' firm). Which company are the shares in?

atush

You can only use it as a loss if you have made a gain elsewhere that isn't covered by your CGT exemption in the year your loss is confirmed.

So, if you have shares you were planning to seel at a big gain, or property etc it would be good to sell during the year you have the loss on your books.

bingle

The company was Welti tennis & leisure.
Ok, thanks for that re putting against CGT. Not sure
We are in that position but will investigate.
Thanks.