A client has made a substantial investment and to cut a long story short, it has turned out to be a scam. It has been reported to the bank, the police and his insurance company. The investment sums were made from a Ltd Account. There is no paperwork with the Ltd Acc name on it, only the name of the director. The issues therefore are...
1. Is it a company investment or would it have to be treated as a personal investment. The 'intention' was that it was a company investment, but we have no paperwork to that effect. Is it enough (for HMRC purposes) that it has been paid from the Ltd Bank Account?
2. Could it be a capital loss or would it not fit appropriate criteria? I saw somewhere that HMRC doesnt consider theft to be a loss, but they may be able to make a negligible value claim, but I cant find the HMRC manual link for this to find more information.
Has anyone experienced similar? Any advice appreciated.