A capital loss exists from a credit balance on a directors loan account which is now irrecoverable. (The company ceased trading.)
Can this loss be offset against any capital gains for example on a future sale of a second home?
Thank you.
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section 253 TCGA allows
253 covers irrecoverable loans made to traders.
The borrower needs to be UK resident, and if the loan is irrecoverable, the lost loan is a CGT loss; and section 253 (3) allows an individual to claim the loss.
The loss is automatically carried forwards if it is unused.
Loans made to a profession or vocation are also allowed under section 253 if they prove irrecoverable.
yes - losses are not categorised as such
There are a variety of situations where specific losses [i can't think of one right now but...] might be blocked, but in general terms all ordinary losses [whether property, antiques, land, second residence, foreign gains, loans or sales of art etc.] go against all ordinary capital gains.
Off the top of my head, cases where capital losses carried forward are "clogged" (I.e. not generally available against all future gains) include losses on transactions with connected persons and losses on shares acquired in connection with certain employment related schemes.