investment losses in a Ltd company
investment losses in a Ltd company
Author
Discussion

logoman

Original Poster:

413 posts

282 months

Monday 17th November 2008
quotequote all
A good portion of my business's post tax profits are invested in stocks though a company account.
These stocks are worth about 50% of theif book value now. if I were to sell them and take the loss, would this loss ijn capital affect the company's tax liability at all?

Brown and Boris

11,838 posts

266 months

Monday 17th November 2008
quotequote all
I am in the same boat, we are £20K down. I think you have to sell and realise the loss then it can be taken account of against profits for the year.

I did think about selling, realising the loss and buying them back again but they are managed funds so the first 3.5% would go in commission.

I was going to give my accountants a call but if Eric Mc is about he will no doubt have an answer.

2 sMoKiN bArReLs

32,039 posts

266 months

Monday 17th November 2008
quotequote all
Brown and Boris said:
I did think about selling, realising the loss and buying them back again but they are managed funds so the first 3.5% would go in commission.
...are there laws re bed & breakfasting?

Brown and Boris

11,838 posts

266 months

Monday 17th November 2008
quotequote all
2 sMoKiN bArReLs said:
Brown and Boris said:
I did think about selling, realising the loss and buying them back again but they are managed funds so the first 3.5% would go in commission.
...are there laws re bed & breakfasting?
Dunno?

djmotorsport

479 posts

274 months

Monday 17th November 2008
quotequote all
logoman said:
A good portion of my business's post tax profits are invested in stocks though a company account.
These stocks are worth about 50% of theif book value now. if I were to sell them and take the loss, would this loss ijn capital affect the company's tax liability at all?
I spent many fruitless hours trying to find an on-line broker who would trade in UK stocks for my business. Care to let me know who I managed to overlook?



NoelWatson

11,710 posts

273 months

Tuesday 18th November 2008
quotequote all
djmotorsport said:
logoman said:
A good portion of my business's post tax profits are invested in stocks though a company account.
These stocks are worth about 50% of theif book value now. if I were to sell them and take the loss, would this loss ijn capital affect the company's tax liability at all?
I spent many fruitless hours trying to find an on-line broker who would trade in UK stocks for my business. Care to let me know who I managed to overlook?
TD Waterhouse

NoelWatson

11,710 posts

273 months

Tuesday 18th November 2008
quotequote all
Brown and Boris said:
I am in the same boat, we are £20K down. I think you have to sell and realise the loss then it can be taken account of against profits for the year.

I did think about selling, realising the loss and buying them back again but they are managed funds so the first 3.5% would go in commission.

I was going to give my accountants a call but if Eric Mc is about he will no doubt have an answer.
I don't think you could write the loss off against profit, but I will be happy if I am wrong

Brown and Boris

11,838 posts

266 months

Tuesday 18th November 2008
quotequote all
I have emailed my accountant, which may be a thankless tasks as he seesm to spend most of his time counting thiings in warehouses but if I do get a reply I will post it up.

logoman

Original Poster:

413 posts

282 months

Tuesday 18th November 2008
quotequote all
djmotorsport said:
logoman said:
A good portion of my business's post tax profits are invested in stocks though a company account.
These stocks are worth about 50% of theif book value now. if I were to sell them and take the loss, would this loss ijn capital affect the company's tax liability at all?
I spent many fruitless hours trying to find an on-line broker who would trade in UK stocks for my business. Care to let me know who I managed to overlook?
I use Killik, they're not an online broker.

Brown and Boris

11,838 posts

266 months

Tuesday 18th November 2008
quotequote all
I am told;

For tax purposes the dice are loaded against you. If you make a trading loss (on business activities) then you can offset the loss against a capital profit, but - and you’ve probably guessed what is coming – if you make a trading profit and a capital loss, then the loss can only be carried forward against a future capital gain / profit.


Eric Mc

125,855 posts

296 months

Tuesday 18th November 2008
quotequote all
Boris is correct - trading losses are more flexible than capital losses.