TAX Investigation- Capital gains/losses

[hpsims]

I have received a letter asking for details of some transactions that were made during 2010.

As part of this query it asks for details and factors as to why any gains / losses were offset against the income.

Can you please advise

1. Are any capital losses able to be offset against income tax - it states on the self assessment application that you are able to do this

2. is there any specific HMRCor other tax guidelines stating this can be done as they are asking for factors leading to this decision.


They are also asking for evidence and paperwork of the number of shares, costs and date of purchases - most of these shares were purchased prior to 1981 and numbers amount after this date. The cshares certificates have been handed into the broker as they are now in a nominee account, how would i provide evidence / paperwork of this.
I have a list of the shares purchased the date of purchase and their costs would this be sufficient.

they also want the calculations on the gains losses

any help much appreciated

thanks
hpsims

[Tax Champion]

Losses can only be set against income tax in a very few limited circumstances,(see http://www.hmrc.gov.uk/helpsheets/hs286.pdf) and this not not include losses on normal share transactions - you appear to have misunderstood the guidance if you have claimed an offset.

All entries relating to capital gains/losses on the tax return must be supported by calculations showing how you have arrived at the end result, but you should not need to provide copies of share certificates or contract notes at this stage - your list of dates and costs should be sufficient.

[Peter D]

Were the losses on a qualifying furnished holiday let or what. We need more information. Clearly HMRC do not think so. Regards Peter