Loan to my employer

Hi, I have made a small loan to my employer and they now look like they are going into liquidation. Assuming this effectively writes off the loan, can I make a claim on my self-assessment return for some form of bad debt relief? Thanks.

Hi ,
 

You can report the loss in the capital gains section of the return.  You should also provide supporting evidence of the loss in a PDF file and attach it to your tax return .

Thank you .

Thank you. Will I be able to offset the loss against income in the same Tax year? Or will I simply have to carry the loss forward? Also, would evidence constitute a liquidators statement or would I have to wait until the liquidation was complete and had the final liquidators report?

Hi,
As the loss on your loan would be declared in the "Other property, assets and gains" section, you would only be able to carry the loss forward for use against a future years capital gain.
Thank you.