Hedge Interest - Capital Income?

[deepak]

Hi All

One of my corporate client(Estate Agent) has got £56,000 as Hedging interest from Bank. Hedging was done against a loan liability against property portfolio.

In the same year the company lost £100,000 in an investment in a Travel Company (which went into liquidation).

I understand that Capital loss can only be offset against chargeable gains?

Can the Loss of £100,000 be offset against £56,000 (one off receipt) income.

Any reply would be very much appreciated.

Thanks
Deep

[Incredulum]

Almost certainly the hedging interest is non-trade loan relationship income.

The capital loss may only be offset against chargeable gains (= "capital gains").

[deepak]

Thanks a lot for clarifying.