Refund of CGT paid 2007 against loss this year?

Jano

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I paid CGT in 2007 on the profit from the disposal of property in 2006. I bought shares in 1999 in a company called Monticello plc which has been in receivership since 2000. The official receiver has still not concluded his case. Does anyone know if and when it is concluded, can I claim the loss (approx GBP 2000 in 1999 prices) against CGT I have paid in 2006 and get a refund after the fact? I would have offset the loss against the CGT in 2006 but was under the impression that I have to wait until the matter is concluded. I would appreciate if anyone can enlighten me!
 
You can't carry losses back, only forward - sorry. There is a mechanism to write down the value of property that has effectively lost all its value (like shares that have tanked and have no hope of recovery - e.g. Baltimore in its day) and I don't know if the Revenue will now allow you to retrospectively write down the loss as if it happened in 2006 (the same year as your gain). It may be worth a shot but I wouldn't hold out too much hope.
 
Thanks Watersprite,
When I paid the CGT in 2007 on the profit made on the sale of a property, the loss already existed from the shares. They 'tanked' as you so aptly put it, around 2000. I just wasn't aware that I could have written them off against the CGT tax on the profit from the property at that time. So the loss was made before the profit, I just didn't carry it forward as I could have against the profit. Sorry in advance as I realise I may be misunderstanding you but can I now ask them to allow me to adjust the amount I paid them to take into account the loss? Thanks for the reply.
 
Ah - that may be different then. I'd imagine your problem will lie in whether the shares were disposed of/the loss realised before or after the CGT gain. If you haven't actually disposed of the shares, then the advice in my first post would remain the same - you'd have to try with Revenue to see if you can elect to write them off as of a date before the gain (or in the same tax year) and then you should be able to offset that loss.

For example, if you were doing it all now and hadn't made any losses or gains yet, I'd do that procedure whereby you can write off share values when they are essentially worthless, then offset the gain in the same tax year against those losses. The wrinkle is whether, if you haven't disposed of the shares, the revenue will let you make a retrospective election to write down the value of the shares. The point is not necessarily whether the shares were worthless as of 2000 (when they would have allowed the write-down), but whether they will allow you do it now.

I'd write to them and explain the share history, telling them that the shares were essentially worthless as of the date the company went into receivership (2000) and that you inadvertently neglected to include that against a future capital gain.

Note that, if you do receive money from the liquidator in respect of the shares in the future, that will be treated as a gain on the entire amount if you have chosen and are allowed to write them down to zero now.

Good luck with it

Sprite
 
Thanks Sprite for the advice, I'll give it a go while taking a "he who expects nothing will not be disappointed" approach!
 
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