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Alex J.
Alex J., Solicitor
Category: Bankruptcy Law
Satisfied Customers: 3557
Experience:  Bankruptcy, liquidations, administrations, pre pack sales, re use of company names and director duties and offences.
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hello I was made bankrupt last year and due out of my bankruptcy

Resolved Question:

hello
I was made bankrupt last year and due out of my bankruptcy on the 10th April
My assets once sold will still leave a loss of over £100k. Is this a loss on my tax return
thank you
Submitted: 3 years ago.
Category: Bankruptcy Law
Expert:  Alex J. replied 3 years ago.
Hi

Thank you for your question and welcome.

My name is XXXXX XXXXX I will assist you.

Have your assets not been vested in your trustee in bankruptcy?

Kind regards

AJ
Customer: replied 3 years ago.

They are but have not been sold yet. Mainly 3 buy to let properties. The trustees seem to have taken an age to get around to selling them.

Expert:  Alex J. replied 3 years ago.
Hi

Thank you.

Have HMRC insisted you file a return for the bankruptcy year? Or is this voluntary?

Kind regards

AJ
Customer: replied 3 years ago.

they have said I do not need to fill one out this year

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

Any losses will belong to you they will belong to your estate in bankruptcy.

If your estate is Insolvency and you are paying PAYE, then it will be up to your trustee to ensure any income received is properly taxed.

What are you concerned about offsetting CGT?

Kind regards

AJ
Customer: replied 3 years ago.

Hello thank you.


 


I'm still confused with regards XXXXX XXXXX loss and putting it down on my next tax return. I was not payee as I was self employed but the losses have also come from owing money to creditors, mainly to a bank. Would this go down as a loss.


 


i.e. Bank made me bankrupt for 500k owed.


They will get 100k back from sale of my properties


Do I then put down 400k as a loss?

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

I am going to opt out a refer this to a tax expert.

I do not believe you can claim those losses as they relate to your estate in bankruptcy, but would like to refer this to a colleague to confirm.

Kind regards

AJ
Customer: replied 3 years ago.

ok thank you for your help

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

I have confirmed the point with one of my colleagues.

This loss belongs to your creditors and not to you so you cannot claim it.

I am not sure you will need to file a tax return at all. I would double check this point as it is probably only necessary if you are a sole trade.

Kind regards

AJ
Alex J., Solicitor
Category: Bankruptcy Law
Satisfied Customers: 3557
Experience: Bankruptcy, liquidations, administrations, pre pack sales, re use of company names and director duties and offences.
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