Have Tax Questions? Ask a Tax Expert for Answers ASAP
Yes it was
again.When you backdate losses such as capital losses, the tax relief is calculated based on the situation earlier year. However, the relief is usually given as an adjustment to the tax liability tax year in which you report the loss in your tax return.However, if you consider that the shares are of negligible value now, you can make a claim to that effect by writing to HMRC and, if you are wishing to take the risk that they may not accept that the shares are of negligible value, the result of which would be that you leave yourself open interest charges and surcharges on tax paid late, by making an adjustment to your 2013/14 tax liability in box 15 on page TC2 of the SA110 Tax Calculation Summary here.Take a look at the notes here and here information on the rules around claiming negligible value status and aspects specific to EIS shares.I hope this helps but let me know if you have any further questions.
I don't think the would accept they are of negligible value now - but the firm will run out of cash by August and I doubt they will manage to raise any further capital.
My question was more around whether I can somehow offset gains this year against losses in future years. Either by withholding some of the gains against that investment of backdating the loss, say, next year.
OK - thanks