investment losses in a Ltd company

[logoman]

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]

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]

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]

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]

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]

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]

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]

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]

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]

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]

Boris is correct - trading losses are more flexible than capital losses.