Income Tax Relief on Subscriber shares but insolvent balance sheet
Client has transferred his shares to a fellow director for no consideration. I am happy that this is the market value of the shares.
He has subscribed for the shares over a number of years, firstly on incorporation and then 2-3 years later when the company needed to raise some money.
I am content that he can get relief under s131 ITA 2007 for the original subscription but then 2-3 years down the line, the company balance sheet is insolvent, so in my mind the shares are worthless when he subscribes for them. I appreciate that he has a monetary loss but I'm not sure that the further subscriptions are allowable for capital losses in this case.
I seem to remember having this argument with HMRC some years ago but my superior tells me to this is an allowable loss.
Any help would be appreciated.
- VAT on employee loan 333 6
- Interest, surcharges and interest on late payment of tax 132 3
- Is a property owner charging a peppercorn rent to a limited company acceptable 57 1
- Travel expenses from Spain to the UK - tax deductible ? 259 9
- Auto enrolment 1,463 14
- Charity requirements to report ALL I&E in accounts 163 3
- Client's company struck off 580 17
- Optimum salary for directors appointed part way through the year 129 1
- Extension of lease in flat management company 97 1
- Does SMP and SPP go up if leave goes across 2 tax years? 194 7
- Does a building subcontractor charge VAT on his labour on a new-build? 335 9
- Practice Company Secretarial Software recommendations please 107 1
- Bank Requesting clients' tax residence 192 3
- Sole trader startup losses and PAYE income in same year 132 3
- Anyone had this problem?? 715 19
- Input VAT suffered in EU 155 3
- Investment property? 100 2
- Do you charge fee or % for Successful appeal against HMRC penalties? 1,620 23
- Sole Trader Cessation 177 2
- VAT flat rate scheme 340 6
- QROP pension input amounts 470
- HMRC BENCHMARK EXPENSES 425
- write off loan or loan to equity swap or both 408
- fraud 338
- Sole trade business in UK, but the owner works from EU 258
- EPS and CIS deductions 247
- Construction CIS LLP Company 242
- Stamp duty on house transfer between spouses 199
- SAGE winforecast 170
- LIVE: Budget aftermath webinar 166