Inquiry about the Capital Loss report: For which tax year does it apply?

Dear HMRC, I am writing on behalf of our client, who purchased listed shares from GTT Communications, Inc. ("GTT") during the early part of the 2021/22 tax year through investment platform, IG. However, we encountered a situation that requires clarification regarding the recognition of capital loss. On August 2, 2021, The New York Stock Exchange delisted GTT's shares, leading to the filing of a bankruptcy application by GTT and certain affiliates on October 31, 2021. Subsequently, on December 16, 2021, the United States Bankruptcy Court for the Southern District of New York approved GTT's bankruptcy plan. The noteworthy development occurred on December 30, 2022, when GTT emerged as a private company. Reference: U.S. Securities and Exchange Commission - Considering the bankruptcy situation involving GTT, our client incurred a capital loss. According to information provided by our client's investment platform, IG, the capital gain loss is dated 30 December 2022, the day GTT emerged as a private company. Upon reviewing the investment report from IG, the investment report suggests that the capital loss should be accounted for in the tax year 2022/23 as it use the date 30 December 2022 and 9 January 2023 as disposal date of share. However, there is some uncertainty, as it may be relevant to the 2021/22 tax year. Despite our efforts to consult HMRC guidance, we have been unable to find specific information confirming the tax year to which this capital loss should be attributed. We seek your guidance and clarification on the appropriate tax year for recognising the capital loss related to GTT's situation. Your assistance in this matter would be greatly appreciated. Thank you for your time and attention to this inquiry.

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Hi,

For an answer to a personal question of this nature, you would need to contact our self assesment team either by telephone or webchat.

Self Assessment: general enquiries

Thank you.