# Can you claim a CGT loss on the loan notes issued by the Dolphin Trust



## CuriousCork (23 Apr 2021)

A relative of mine invested €100,000 in a loan note issued by the Dolphin Trust. He wishes to claim the loss as a CGT loss against other gains but he has received conflicting advice. One person has told him he cannot claim a loss on a debt. Can he claim a CGT loss on the loan note?


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## Gordon Gekko (23 Apr 2021)

Who gave the conflicting advice?

A loss in respect of debt on a security is normally allowable, but it can depend.

What does the Prospectus say about potential gains?


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## CuriousCork (26 Apr 2021)

An experienced investor told him he could not claim the loss, whereas his accountant (who is not a tax consultant) told him he could.

As it was a debt there was no provision for a capital gain. He was supposed to just receive interest.


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## EasilyAmused (26 Apr 2021)

This may help:









						Capital Gains Tax Loss Relief On Converitble Loan Notes | Amorys News
					

Capital Gains Tax (CGT) | Simple debt is not an allowable Loss for Capital Gains Tax Purposes. What is a ‘debt on a security’? ..read article




					amoryssolicitors.com


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## CuriousCork (26 Apr 2021)

That is useful. As nobody would have paid more than the face value of the notes then he will be unable to use the loss.


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## tallpaul (27 Apr 2021)

Down a €100K... ouch!! And people get criticised for sticking money in the bank or in savings certs...


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