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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4996
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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There, in 2013/14 I invested £20k in a new limited company

Resolved Question:

Hi there, in 2013/14 I invested £20k in a new limited company and wondered if this can be recorded as a cost on my self-assessment for 2014/15?
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your question..Please clarify for me..is this a new company you formed?Did you invest under an Enterprise Investment Scheme? many thanks
Customer: replied 1 year ago.
Hi there,This was a new company that was formed by two partners each investing £20,000.00 to purchase an existing business. We did not invest under an Enterprise Investment Scheme.Please let me know if you require any further details.Thanks
John
Expert:  taxadvisor.uk replied 1 year ago.
John, thank you for your prompt reply.Any investment you have made on purchase of an existing business is capital investment and this does not qualify for income tax relief, I'm afraid.This is a cost of buying a business and will be taken into account if/when you were to sell your business in determining the gain on sale. It falls under capital gains tax regime.
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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.
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Customer: replied 1 year ago.
Hi there,I wonder if a loss can be recorded now then as I have since sold my share in the business for £12,300.00 resulting in a loss of £7,700.00?Thanks
John
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply. If you have made a loss on sale of shares, then you should report capital loss under supplementary pages SA108 (capital Gains Summary). This way, your loss is recorded and available for offset against future capital gains. I hope this is helpful and answers your question.If you have any other questions, please ask me before you rate my service &ndash; I’ll be happy to respond.
Customer: replied 1 year ago.
Hi there,So if I understand correctly then this is recorded and set aside and may be used to net against any capital gains in the future, for example from the sale of second property? However it is not accounted for against income in the current SA submission?Thank you for your helpBest regards
John
Expert:  taxadvisor.uk replied 1 year ago.
John, thank you for your reply.Your understanding is correct. I hope this is helpful and answers your question.If there are no more issues, I will appreciate if you would kindly rate my service/accept the service I have provided before you leave the site, to ensure I get credited for it by Just Answer.
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Expert:  taxadvisor.uk replied 1 year ago.
I thank you for accepting my answer. best wishes