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bigduckontax
bigduckontax, Accountant
Category: Tax
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Experience:  FCCA FCMA CGMA ACIS
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I know someone who is funding young people in IT development

Customer Question

I know someone who is funding young people in IT development he has lost money is this a capital loss. Also would it be better to do this through a limited company
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. This is not a capital loss, but it could be a trading loss. If so it can be set against other income in the same tax year or carried forward whichever he prefers. However, it could be held that this is not a business activity at all and his funding of young people merely a gift so it would be outside taxation altogether. If it was undertaken through a limited company the effect of the loss and the remedy is identical. I do hope my reply has been of assistance.

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