Dead Loss?

Dead Loss?

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 A client "invested" £8,000 in a friend's business - a limited company. He received no shares and it would seem there was no written agreement.

The friend is "having a nervous breakdown" and is closing the company which apparently has no assets. (I am trying to keep the " " to a minimum but the temptation to use them a lot in this sentence is strong).

From a tax point of view is there anything we can do? Could this be treated as a loss for CGT purposes or is the lack of any paperwork a killer?

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By bernard michael
10th Jul 2012 08:54

Did the money actually go into the business or was it paid to the friend.I suspect the latter in which case it is a personal loan to the friend and not allowable for CGT but can be claimed back using court action if necessary.

Good luck with this it will end in someone's tears 

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