Advising on loss relief for investors

Mr and Mrs Thomas came to Sarah Woodall when they were denied the loss relief that they had expected, after losing loans of almost £1m in a business which they were trying to sustain.

Mr and Mrs Thomas came to Sarah Woodall when they were denied the loss relief that they had expected, after losing loans of almost £1m in a business which they were trying to sustain.

They had borrowed the money in order to try to support the business but lost it when the company failed. Sarah said: “You can get loss relief if you invest money wholly for the purposes of the trade you carry on and you lose your money; this is designed to encourage entrepreneurs and investment in British industry. In this case there were also VAT issues and a claim was made wrongly.”

This prompted a lengthy HMRC investigation, leaving the Thomases in financial difficulty – they had lost their original investment, could not get the tax relief on it and were facing penalties for the claim made wrongly.

Sarah, who is a CEDR accredited tax mediator, said: “This was an instance where dealing positively with HMRC was effective. They have accepted that the incorrect claim was a mistake and have agreed to settle with no penalties – the majority of the loan made did qualify for loss relief.”

Key contacts involved

Sarah Woodall, Partner (Barrister), Head of Tax

Corporate

Direct Dial: 020 3375 8301
Mobile: 07384 118 426

Key services involved

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