Robert Oakley

If I invested various amounts in a company that went into administration on October 1st 2024 and hence the shares now have negligible value, I would like to understand the implications in various scenarios: Assume investments were: £20,000 in 2019, claiming £6,000 ICT relief £20,000 in 2022, claiming £6,000 ICT relief Assuming the company went into administration on 1/10/2024, I am clear I can claim £14,000 loss relief on the 2019 shares (held for 3+ years, where loss is the acquisition cost (£20k) less relief claimed (£6k). I can do this by making an NVC for these as part of my 2024/2025 tax return. I am less share about my options with the 2022 shares. 1) Is the 3 year holding period for EIS shares based on the date of administration, or the date the NVC is made? 2) If it is the date of administration (or date of the NVC which is within the 3 year anniversary) meaning not held for 3 years 2a) Can I claim £14,000 loss relief on the 2022 shares as they were not held for 3 years at the deemed point of disposal? 2b) Can I instead repay the £6,000 ICT relief on the 2022 shares and claim £20,000 on the total loss? 3) If the 3 years is based on the date I make the NVC and this is AFTER the 3 year anniversary 3a) Presumably i just claim the £14,000 loss relief on the 2022 shares 4) Can I choose to make the NVC for the different investments at different times. I.e. make the NVC for the 2019 shares in 2024/2025 and wait to make the NVC for the 2022 shares until 2025/2026 in order to use the loss next year? Or do I need to make the NVC claim for all shares in the company at the same time?

It is a bare trust, so the trust team already told me it was a self assessment issue! Typical that one department says it is the other, but you can't speak to both at the same time and have them tell each other that. You just get left without an answer!

A family member who died in 2020 was the beneficial owner of equity in a partnership that was held in trust (The Trust) by a partner (Partner X). Partner X has been in a legal battle with the partnership which has resulted in a settlement to be paid through Partner X receiving partnership income equal to the settlement amount (Settlement X) for the year 2022/2023 (having previously received £0 for that year). The partnership has amended the partnership tax return to show Partner X has received Settlement X. Partner X, as trustee of The Trust, no needs to account for the trust's share of the settlement (Settlement Y) to the estate of the deceased. Partner X is stating that they must declare the full amount (Settlement X) and pay tax on the full amount to HMRC and that they therefore can't pay Settlement Y to the Trust on a gross basis. Question 1: Is this correct, or could Partner X declare their partnership income to be (Settlement X - Settlement Y) on the self assessment, explaining the difference and giving the UTR of the deceased? Question 2: If the above is not possible (or Partner X refuses to do this) and hence makes a payment to the estate on a Net basis (equal to 60% of Settlement Y, assuming 40% paid as tax) then, as Trustee, are they required to provide proof that the income paid to the estate (from the trust) is "tax paid" and the exact amount of tax paid (i.e. via an R185)? Once the income is received into the estate (either Gross or Net of ICT) then the executor will be required to complete a tax return for 2022/2023 on behalf of the estate and declare it as received. Presumably, if received net of ICT (at 40%) then the estate will be able to claim back the excess tax (as the estate would pay a flat rate of 20%). If received gross then the estate will have to pay 20%. Question 3: Once the taxed income is correctly settled into the estate account (i.e. 80% of Settlement Y, where 20% has been paid in tax by the estate), is this then subject to further income tax when distributed to the beneficiaries? I.e. is this still considered income of the beneficiary, so subject to any marginal rate based on their personal income status?