Self employed tax return and cash capital introduced

an1179

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

Pennywise

an1179 wrote: »

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

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.