Investment Bond Surrender

Investment Bond Surrender

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A company takes out a £25000 capital and income investment bond and six months later surrenders it for £18000 as it needs the cash. Can it claim 20% relief on the £7000 loss.?

(No one at the life office knows)
david

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By neileg
10th Dec 2001 16:00

It depends
(bearing in mind I'm the tax duffer round here, but no one else is answering!)
I would have thought that this would depend on the nature of the company's trade. Assuming that it is not an investment company, then the answer would be no, it is a capital loss, available against future capital gains.

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