An individual was required to make a payment of £20,000 under a loan guarantee on behalf of a Limited Company that he was involved in.
The payment was made in 1993, and all of the conditions for claiming a Capital Loss of £20,000 under Section 253(4) TCGA 1992 appear to have been met.
As the payment was made 20 years ago, am I correct in thinking that there is no time limit for claiming the Capital Loss, so that it can be claimed now?
Thanks in advance for any replies.
Replies (1)
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Yes
Before self assessment was introduced there was no time limit for claiming a capital loss as, in law, the loss did not exist until there was a gain to offset the loss against! Since self assessment was introduced the loss must now be claimed (usually by inclusion in the self assessment) but care needs to be exercised by those who the revenue deem not to need to submit a return as they may not claim within the necessary period.