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Where Taxpayers and Advisers Meet

Failed startup - how to claim loss on Tax Return

zxcv
Posts:4
Joined:Wed Jan 17, 2018 12:12 pm
Failed startup - how to claim loss on Tax Return

Postby zxcv » Wed Jan 17, 2018 1:31 pm

Hi.
Two years ago, I started a new Ltd company (to run a franchise business) and lent £36K personally to the company to pay for franchise fees, legals costs etc.
owever, the franchise business never started at all (couldn't find a suitable site) and in Oct '16, I closed the Ltd company. The £36K was all lost.

I am now completing my 2016/2017 tax returns. My question is : how do I best claim this £36K loss so that it can be offset against future (capital) gains. I assume it cannot be used against income. Would it come under the "Disposed chargeable assets" section (under Capital Gains)?

Thanks very much in advance.

z

GlobalTaxAdviser
Posts:633
Joined:Fri Dec 05, 2014 1:18 am

Re: Failed startup - how to claim loss on Tax Return

Postby GlobalTaxAdviser » Thu Jan 18, 2018 12:07 am

Hi

I am not sure you can utilise as a capital loss since the company never traded and may not qualify as a trading company

Secondly there "could" have been an option to convert the loan to share capital and claim under negligible value so it would go under income but too late to consider now

It is a complex area and suggest you do consult an tax adviser on this matter. I would liked to have help but admittedly its not an area I know that well

Kind Regards

GTA


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