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Where Taxpayers and Advisers Meet

Failed investment

Posts: 4
Joined: Wed Oct 31, 2018 10:44 am

Failed investment

Postby Good » Sat Jun 27, 2020 8:38 pm

I own a limited company. Last year I invested a small amount of money in a shop a friend was setting up. The business failed and my money is lost (thankfully not much). The investment was on the companies name.
Do I have to pay corporation tax on this?.

Thanks in advance

Posts: 227
Joined: Mon Aug 12, 2019 8:41 am
Location: Sandhurst, Berkshire

Re: Failed investment

Postby jerome.lane » Sun Jun 28, 2020 7:07 am

The company won’t pay corporation tax on a loss but it won’t get any relief either unless there’s gains in the year or future gains. The company should record its loss which should be carried forward indefinitely to use against future disposals.
Jerome Lane
Tax Adviser
Telephone: 07943 005902

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