Stock Market Losses

[ace00]

Anyone know if these are tax deductible in the UK?

[QwertyBerty]

Anyone know if these are tax deductible in the UK?

If you've realized a loss by selling shares then I imagine you can offset the loss against other capital gains.

QB.

[ChimpMaster]

Yes, against capital gains, you can offset a realized loss for up to 7 years after the event. For example, sell a property on which you've made profit, and then offset your stock market losses.

I believe it should be possible to close your company down, take the bulk as a capital distribution, and offset any stock market losses against this. Not 100% sure on this as I haven't done it myself, but it sounds plausible.

[ace00]

Thanks for the info.

[TykeMerc]

Wouldn't that only apply if the shares were bought as company assets though?

I was under the impression (possibly naively since I'm rather risk averse when it comes to tax planning) that you could only offset losses that were directly business related.

[expat]

Wouldn't that only apply if the shares were bought as company assets though?

I was under the impression (possibly naively since I'm rather risk averse when it comes to tax planning) that you could only offset losses that were directly business related.

Who mentioned a Company or a business?

[ChimpMaster]

Wouldn't that only apply if the shares were bought as company assets though?

I was under the impression (possibly naively since I'm rather risk averse when it comes to tax planning) that you could only offset losses that were directly business related.

If you close your Ltd, you can choose to personally take a capital distribution, which is treated as a capital gain (CG), and hence chargeable to CG tax. You use your annual personal CG allowance to reduce the taxation on this.

So, since the distribution is a personal capital gain, you should be able to write off any capital losses against it.

I'm not an accountant, but I believe this is the way it works.