My client (personal) has had a substantial amount of money stolen from his foreign bank account (£x0,000) which he may not get back. He is asking if we can claim this as a capital loss. I know what I think but just interested if anyone has any views on this?
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Where is the money from?
The answer may depend on where the money came from in the first place. If it is business money, then there may be a trading deduction available. If it is a long-term investment, then you may be able to claim CGT relief, but if it is personal spending money HMRC view (in their manuals) is that there is no CGT involved.
Whatever relief you claim expect to have to prove the debt and that you have taken steps to recover it.
Don't forget to file a Suspicious Activity Report with the NCA under MLR 2007 / s330 PoCA 2002.
David
Thanks all
Huw - it is personal savings, no business element. Cash in an overseas savings account because the interest rates were good (obviously too good...) Client is employed.
David - I have no details other than what I posted above - no bank details, no details of what happened except the money has been stolen. Do I really need to file a report? If a client rang and told me his house had been burgled would I need to file a report? I know the rules are stupid in parts, so am braced for your reply....
I think you are saying that neither of the alternative conditions in s330(3A) PoCA 2002 - as inserted by s104(3) Serious Organised Crime and Police Act 2005 - is met and therefore you are not obliged to file a report.
(Translation: you have no useful information, so reporting would simply waste everyone's time.)
David