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.
- business entertaining deductibility 66 1
- Go Cardless 210 7
- Self assessment tax arrears 36 2
- Scottish independence - what happens to HMRC? 847 51
- R & D 86 3
- Disengaging a client who uses our office as a registered office address 725 16
- Are HMRC cutting out Agents in tax investigations? 192 1
- Shareholder/Directors termination payments 48 1
- Childcare vouchers and final month payroll Qs 86 2
- Can anybody help withe the RTI end of year process? 100 3
- Payroll software with annual pay period? 89 1
- New Business Registration 195 5
- Audit rules 127 3
- Hosted email exchange 112 4
- Excel formula for UK corporation tax including losses 121 1
- G P life time allowance 94 3
- Why will HMRC not code out my client's £1,730 underpayment for 12/13 351 11
- Bringing money to Uk 198 3
- How can I tell what returns are outstanding on HMRC online? 105 1
- Accounting for investment club gains 103 2
- Xtuple 492
- Qtac payroll for bureau 331
- Confused - Professional Association a Mutual trader, or not? 275
- Industrial & Provident Societies 271
- Mehjoo 214
- Data transfer from Sage Line 50 to VT Transaction+ 213
- New strategic report 167
- Domain name sale and limited company 151
- South African Government Pension 147
- CIS schemes 142