Limited company capital loss on investments

Capital loss on investments

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Hi, client has invested £40k of surplus cash from his limited company, in listed stocks and shares.

The investments (non of which have been sold) were valued at £20k at close of business at company year end.

How would you report this in the year end accounts and CT600?

I'm sure this sounds relatively straight forwards but it is not something I have come across before so any advice would be very welcome - thank you.

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By johngroganjga
28th Jun 2016 17:22

Off the top of my head the FRSSE accounting policy is to carry at cost less any provision for impairment, with y/e market value disclosed by way of note. Impairment is supposed to be permanent not transitory, so you wouldn't necessarily write down to market value in anything like every case.

Nothing happens for corporation tax until the shares are sold or become of negligible value. in the meantime you just add back any impairment adjustments in the tax computations.

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