Write off investment in French company

How do you recognize the loss on writing off an investment

Didn't find your answer?

Hi there, can you help please. Our company invested in a company in a similar industry overseas less than 200k of shares . The business is making losses so it's decided that we write it off. Firstly category would this be applied as in your P&L and would there be any tax relief on this.

The value of the investment has been unchanged in our books for years so no prior hains or losses recognized. 
 

thanks!

Replies (3)

Please login or register to join the discussion.

avatar
By Tax is always taxing
18th Jan 2024 08:19

Assuming you still hold the shares I would just process it as an impairment on the investment. Are you planning on keeping hold of the shares?

Thanks (0)
avatar
By Bobbo
18th Jan 2024 10:11

Is "less than 200k of shares" £199,999 or £1?

Thanks (1)
Accountants & Business Advisers
By Gladstone
18th Jan 2024 12:39

Assume you are reporting your numbers under FRS102 or IFRS - you could consider impairing the investment in your books and if the French business turnaround good in future you will have an option to reverse your impairment. Impairment will be tax neutral if that makes sense but cleaning the books now is the best practice suggested. If you need guidance on how to do an impairment exercise (both easy and little complex routes), feel free to reach out. Otherwise good luck with reporting.

Thanks (0)