Can I claim anything on a failed investment?

[englishmike1]

I live in the UK but had an investment in a restaurant business in Seoul, Korea. Unfortunately, it went belly up... am I allowed to claim anything back on this (tax relief, etc)?

[msp]

Because this was not a UK trading company you cannot claim the loss arising from a negligible value claim against income under Section 574 ICTA 1998 (now Section 131 ITA 2007). You don't say whether it was a company or partnership etc, but focussing on the word "investment" the likely outcome for you is that a capital loss will arise which can be carried forward to be set against any future gain.

But if you were involved in the business it would be a trading loss, which can be set against any other income of the year.