Where you sell listed company shares at a loss this would be treated as capital loss. This loss can be offset against capital gains araising in the same tax year or in future tax years.
Capital gains/ losses are calculated by deducting the orginal cost of the asset, plus any enhancement expenditure, from the selling price. The cost of the shares includes any fees paid on the purchase of the asset (shares) and the money received on sale is reduced by any fees incurred on the sale of the asset (shares). Tax allowable fees include legal fees, stamp duty and stockbroker’s fees.
Any Capital losses must be offset against any gains arising in the same tax year and if there is a net gain, then the annual tax free exemption (currently £10,100) is applied. If there is a net loss, it is carried forward to future years until relief can be given.
Using losses in this way is a key tax planning point, so it is recommend you take advice from us before selling any shares at a loss.
If you would like any further information, please do not hesitate to contact Southside Accountants Wimbledon & London.
I have had some clients who at the start up stage of their business were concerened that they would not be able to open a bank account due to their poor credit rating. This rating was as a result of difficulties in the past meant that they were unable to pay their debts. They had agreed repayment plan with all their creditors.
This is a question we are asked very often. There is no simple answer to this. It depends on the type of business you run and the type of person you are. There are certain records you need to keep. However, you have several options how you keep these records. The following link will take you to a Business Link website that explains this area extremely well:
After your credit period (for example 30 days) there is no hard and fast rule on how long you should wait before taking further action.
The short answer is no, you do not have to be an accountant to submit accounts to Companies House. However, it is would be best to employ services of an accountant. He/she would ensure all the changing regulations are complied with. Further, the accountant will be able to identify any tax savings. These tax savings may outweigh their fees.