Choosing when to Claim a Capital Loss

During hard economic times the shares you own of companies have little or no value. In this case you can claim a loss against any capital gains you’ve made. But the question is whether you have the option of allocating it to whichever year you prefer?

The value of many shares has fallen in the economic downturn. But depressed values present an opportunity to carry out transactions that you considered before but put off because of the high capital gains tax cost. Not only that, it offers a chance for some retrospective tax saving.

If the shares in question had a negligible value at any time during the past two years, you can backdate your claim. The two-year backdating applies from the date the HMRC receives your claim. As an example, you owned some shares in a company that went in to administration in April 2011, but is still being wound up, its shares probably had a negligible value then. You can send a claim to HMRC for NV treatment to apply at a date you choose back to April 2011.

For more advice on capital gains tax and implications of them for your businesses, contact   KVS & Co. We acts as accountants Hammersmith, Earls Court, Fulham, Chelsea, Wandsworth, Southfields, Battersea, Barnes and Putney


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