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taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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OK many thanks. I have a question regarding documentation

Resolved Question:

OK many thanks.

I have a question regarding documentation to support price paid for the shares. The company was Guernsey based AIM listed Mariana Resources Ltd, with Offices in Sydney. I was CEO from listing in 2006 until 3 years ago.

I bought a total of approximately 5 million shares for a total of (very approx) £ 320, 000 through:
A exercise of options (10 transactions) and
B via private placement (2 transactions)
C and one purchase on the open market

For cases A and B there was no brokers contract note. I was issued certificates which were lodged either in London and Canada. 3.7M shares were put on my account with JM Finn in London and 1.17M shares were placed with Haywood in Vancouver.

I do not have complete and verifiable data relating to purchases of the shares. I have some incomplete email correspondence and lists drawn up by the Australian based company secretary (now retired) which lists some of options exercised up the time he retired. I am struggling to find documentation for what I put in at the Mariana IPO.

Would it suffice if I got a letter from the present CEO, a qualified accountant, confirming details of options exercised with dates and price, and what I put in at the 20p IPO

Would it help if Barclays Bank were able to trace records of payments to the Barclays account of Mariana Resources to support purchases?

I have contract notes for all share disposals which show price and volume.

There will be an overall gain of approximately £100,000. I sold some other mining shares in Canada following my return to the UK as resident. This loss would more than cover gain on the Mariana shares. I believe I am permitted to offset these Canadian losses against the Mariana gain?

In addition I sold a beach apartment in Ecuador (where I lived for 10 years) that was never my principal resident. There was a loss of some £20,000 between purchase around 8 years ago to sale last November (when I was UK resident) Can I use this loss for present and/or future capital gain. I have Spanish text motorised documentation on the purchase and on the sale.

In case my losses more than cover the gain on the Mariana disposal, may I carry forward these 'unused' losses for future possible gains, and for how long?

Your help would be most appreciated. How do I contact you again on these matters?

Regards John
Submitted: 3 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 3 years ago.

Hello and welcome to the site. Thank you for your question.

[q]
Would it suffice if I got a letter from the present CEO, a qualified accountant, confirming details of options exercised with dates and price, and what I put in at the 20p IPO

Would it help if Barclays Bank were able to trace records of payments to the Barclays account of Mariana Resources to support purchases?

[a]
It is in your interest to retain documentation to support your cost. In the absence of original documentation, a letter from the present CEO confirming details of options exercised would suffice.

All documentation is necessary and helpful in the event HMRC were to instigate an enquiry.

[q]
In case my losses more than cover the gain on the Mariana disposal, may I carry forward these 'unused' losses for future possible gains, and for how long?

[a]
You should report the losses on your tax return for them to be registered. You can then utilise them against future gains till such time they are exhausted.

You can contact me here if you need help in the future. You can address the question to me (taxadvisor.uk) or request that I answer your question.

I hope this is helpful and answers your question

.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

taxadvisor.uk and 3 other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 3 years ago.
I thank you for accepting my answer.

Best wishes.

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