Can these losses be set against income tax?

[PaullKhan]

Hi,

I'd like to know if I can set some investment losses against income tax. Some years ago, I, together with a few colleagues who held senior positions in the company I am still employed by, was invited by my employers to invest in a small investment holding company they were setting up. The investment holding company has now filed the Notice of Voluntary Dissolution and so my original investment in Ordinary Shares is valueless and I have lost all but 1p on loans which I also made to the company, and which have since been redeemed for 1p. I became a Director of the investment company a few years ago, if that's in any way relevant.

Many thanks for any help anyone can give.

[mullet]

When an individual makes a loss on subscribed shares in an unquoted trading company then, subject to being claimed and all qualifying conditions being met, the capital loss can be claimed to the extent of that year's and/or the previous year's income. But an investment company is not a trading company, so it appears that your loss will remain a capital loss and deductible only against capital gains of the same or subsequent years.