losses and taxation

[allenm]

Hi

I have been digging around the threads and have found some interesting points relating to the above. I would like to explore the situation of a friends scenario...

The individual acquires shares at say £10 in the dot com they move to £30 and sells a quantity. The profits are then obviously taxable but then the a** falls out of the market and the next thing you know they are worth £3 which he chooses to sell for whatever reason, making a loss.

Can the losses be claimed back from a previous tax period? The stock was owned personally and was for several millions. he has not approached his accountants about htis as he doesn't think he can claim back and his accountants are money grabbers who he wouldn't give the time of day.

Thanks

 

[dbphoenix]

Find new accountants . . . :cheesy:

 

[Trader333]

Capital gains losses can be offset indefinitely in the UK but you cannot retrospectively claim for tax already paid. What they can do is offset this loss against gains made on maybe a property that has increased in value or some other asset in the future.

This presumes that the tax was paid as Capital Gains and not Income Tax ?



Paul

 

[al76]

Did you try to ask the tax office? sometime they can be helpful...

 

[allenm]

Capital gains losses can be offset indefinitely in the UK but you cannot retrospectively claim for tax already paid. What they can do is offset this loss against gains made on maybe a property that has increased in value or some other asset in the future.

This presumes that the tax was paid as Capital Gains and not Income Tax ?



Paul

Paul.
Hear what you say.. what do you think of this idea!! Say the chap involved invests in a EIS relief investment such as AIM a day nursery, firm etc he can make the investment and claim back 5 years gains as being rolled over. The old money has then been brought forward and the loss in the current period is then offset against profits in forward periods.

 

[Trader333]

It wouldnt be right for me to comment on specific cases as I am no expert but I would be surprised if you can do the above as the Tax Inspectorate are not stupid. I as I have said you can offset losses as described above but you do have to declare them in order to be able to do this.


Paul