Loss on Shares through Ltd Company - Treatment?

**spig** · 12 May 2009, 11:38

Why would you buy shares through your limited company rather than buying them yourself?

**EchoSierra** · 12 May 2009, 14:18

Originally posted by YNWA View Post

I bought shares through my Ltd Company for £5000 last year and due to the excellant timing, they went downward through the floor

Anyway sold them in the end for just over a grand.

Does anyone know if I can write of the loss as an expense? Im thinking as loss on investment??? Please tell me this is possible...

Thanks

Technically you are only allowed to buy shares through your Ltd Company if the share trading account is in your Ltd Company name. (TD Waterhouse offers such a service).

If this is not the case then to avoid any illegality that £5000 should be treated as a Director's loan to you. It therefore becomes a personal, not company, loss. Capital losses from one year can be offset against capital gains from subsequent years.

If you had a company share trading account and therefore have lost ~£4000 then this would come off your profits and reduce the amount of corporate tax you pay.

**YNWA** · 12 May 2009, 14:31

yes it is a TD trading account.

Thanks

**ASB** · 12 May 2009, 14:34

Originally posted by EchoSierra View Post

If you had a company share trading account and therefore have lost ~£4000 then this would come off your profits and reduce the amount of corporate tax you pay.

You sure about that? I don't see how it is a business transaction, sure it will cause a revaluation of the retained assets but I would not have thought there would be CT relief.

**EchoSierra** · 12 May 2009, 14:40

Originally posted by ASB View Post

You sure about that? I don't see how it is a business transaction, sure it will cause a revaluation of the retained assets but I would not have thought there would be CT relief.

Not 100% sure but if you made a profit via share trading with the Ltd Company you'd have to pay CT on it...

**ASB** · 12 May 2009, 14:49

Originally posted by EchoSierra View Post

Not 100% sure but if you made a profit via share trading with the Ltd Company you'd have to pay CT on it...

Yes, but that is of course different.

I would expect that you could probably offset the loss against other share trading gains but not against normal trading income.

Loss on Shares through Ltd Company - Treatment?