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Posted 15 days ago by zimbo
I made a £10,000 investment in a non-reporting fund in September 2019. My investment has made a substantial loss as of today (over £4000) and I have decided to “cut my losses” and sell up. I know that if I had made a capital gain on selling then I would pay income tax rather than capital gains tax on the gain as the fund is non-reporting. I am unsure however as to whether, when I make the loss on selling, I can claim for a capital loss when filing my next Self Assessment. Please can you advise?
Posted 13 days ago by HMRC Admin 21 Response
Hi,
Please have a look at the guidance on losses at IFM13550:
 IFM13550 - Offshore Funds: investors in non-reporting funds: computation of offshore income gain: losses.
Thank you.
Posted 13 days ago by zimbo
Thank you but I'm struggling to understand the phraseology of that Regulation, namely "any loss arising can be relieved only as a capital loss". In simple terms, if when I sell my non-reporting fund investment I only get back £6,000 from the £10,000 I originally invested, can I claim a capital loss of £4000 on my next Self Assessment?
Posted 8 days ago by zimbo
I'm sorry but you have just repeated the first answer to my original question, to which I replied that I have read IFM13550 and do not understand some of it because of the complex and unclear language used in places. I don't understand in plain English what "any loss arising can be relieved only as a capital loss" means. Please can you answer this simple question: if when I sell my non-reporting fund investment I only get back £6,000 of the £10,000 I originally invested, can I claim a capital loss of £4000 on my next Self Assessment?
Posted 2 days ago by HMRC Admin 8 Response
Hi,
Only against any other UK capital gain.
It cannot be set against any other income or any offshore gains.
Thank you.

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