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  • 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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  • Reopen Self-assessment tax return

    Hello, Sir. My friend has asked for my assistance in reopening his self-assessment records for the 2022/23 tax year. He informed HMRC that he had ceased self-assessment several years ago. I suggested that he should call HMRC, but unfortunately, the self-assessment helpline is currently closed. In this situation, I would like to confirm whether he can submit the self-assessment tax return to HMRC now using his previous Unique Taxpayer Reference (UTR) number? (He needs his 2022/23 self-assessment for applying for a mortgage ASAP.) Thank you!
  • P11D for 2021/22

    Hello Sirs, We would like to submit a P11D for the tax year 2021/22. However, when we log in to the online government gateway and select the 2021/22 tax year, it displays "unavailable." On the other hand, we are able to successfully submit the P11D for the 2022/23 tax year. As a result, do we need to submit the P11D for 2021/22 in paper format and send it along with a cover letter to HMRC? Thank you in advance.
  • Business Asset Disposal Relief - how to calculate

    Hello I would like to know how to calculate Business Asset Disposal Relief in Self Assessment. I had sold 14% shares from my Limited Company in 31 July 2022. But I received prepaid payment for the 14% shares which was £50K on 1 Febraury 2022. In 31 July 2022, the 14% shares should worth approximately £60K to £65K (We are still working on the actual share price as we haven't work out the annual profit from 1 Aug 2021 to 31 Jul 2022 yet). I will receive the payment from difference between actual share price and prepaid share price once I work out the annual profit. I had read through the HMRC guidance, it says I can claim the business asset disposal relief. In this case, can I claim the relief for the £50K prepaid share value in 2021/22 self assessment tax return? And claim the rest relief: about £10K to £15K in 2022/23 self assessment tax return? (£60K total share price -£50K prepaid share price=£10K or £65K total share price -£50K prepaid share price =£15K) Thank you in advance!
  • Income tax on investment income (UK interest and UK dividend)

    Hello, One of my friend had an investment account fully managed by a investment company, the account hold investment which generate UK interests and UK company dividends from shares. The investment company took 77.6% from the 100% UK interests income and 100% UK company dividends as their income (the investment company call it "performance fee", is a payment made to an investment company for generating positive returns) , the rest 22.4% (100%-77.6%=22.4%) UK interests and UK company dividends income were paid to my friend. My friend thought that she only took 22.4% of the UK interests and UK company dividends income, she should be taxed at 20% or 40% income tax on the 22.4% UK interests income and at 7.5% or 32.5% income tax on the 22.4% UK company dividends income. And we searched on Google(no related answers from Google) and asked HMRC advisor over the phone, one of the advisor said my friend should pay "taxed at 20% or 40% income tax on the 100% UK interests income and at 7.5% or 32.5% income tax on the 100% UK company dividends income" without giving my friend related HMRC guidance. It doesn't seem right as if my friend's UK interests taxed at 40% from the 100% of the UK interests income, and the investment company also took 77.6% from the 100% of the UK interests income. In this case, she made 17.6% loss from the UK interests income (100%-40%-77.6%=-17.6%) We wonder is there any HMRC guidance on this? Many thanks!