This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Failed investment

Good
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

jerome.lane
Posts: 227
Joined: Mon Aug 12, 2019 8:41 am
Location: Sandhurst, Berkshire
Contact:

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


Return to “Company Taxation”