LF Woodford fund - how will compensation affect claiming a capital loss

helibird

I am thinking of registering my capital loss for the LF Woodford fund with a view to claiming it against CG in this and subsequent years. How will the proposed compensation affect the capital loss

talexuser

It will need to be subtracted because obviously a gain.

wmb194

helibird said:

I am thinking of registering my capital loss for the LF Woodford fund with a view to claiming it against CG in this and subsequent years. How will the proposed compensation affect the capital loss

Does it meet the requirements to be declared as a capital loss? I don't have time to Google it for you but there are criteria to meet for defunct investments before HMRC allows you to.

helibird

Yes I believe it qualifies as a capital loss and that I need to register the loss within 4 years of when it occurred. The first partial distribution occurred in March 2020 so I would like to register it on this years tax return(22-23 . There were subsequent losses for distributions in later years. I can work out the loss occurring at each distribution which so far comes to over £4000 with a small residual value still. No compensation has been agreed yet although the suggestion is it might be about £700 but if I wait for this before registering my loss I might exceed the 4 year time limit.
If I don't receive the compensation until later years can i just include it as a capital gain in that year