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.
- Care Home - Job Price 269 5
- Fee headache 437 4
- Fee reasonable or OTT? 215 6
- ITS HAPPENED AGAIN SPAM SPAM SPAM 227 4
- India Capital Gain 119 1
- Dormant payroll 730 7
- Switch from Sage CT to Digita CT? 105 1
- Our French VAT registered supplier is supplying our French VAT registered customer directly with goods but is invoicing us (a VAT registered UK company). Can I ask them not to charge us VAT? 291 7
- An opportunity to 'vent' your annoyance/anger? 1,493 12
- Interest on Loan to External Individual 115 1
- Why won't CH validate accounts? 521 11
- This feels wrong.... 1,569 21
- Overlap relief 388 10
- Subsistence expenses paid directly from company account 201 2
- To correct incorrect NBV in previous year accounts 285 10
- Pressure to upgrade from Sage 50 Accounts 2013 199 3
- P11D Rejection 274 7
- Directors loans 273 2
- Entrepreneurs Relief:: share disposals after leaving the company 271 5
- Has anyone else tried Iris paperless working papers for audit exempt companies 309 2
- Is this Tax Deductible??? 504
- Theatre Tax Relief 413
- Has anyone been affected by the RBS payment breakdown? 324
- Windows 10 on-going support ... 306
- Straight line write off of Purchase Goodwill ??? 284
- Perkbox 231
- FRS 102 compliant illustrative accounts for an insurance company 224
- Compensation - Taxable or not then CGT or IT 219
- Document Management Systems 193
- Self Assessment - What to enter on the return 191