CGT - how to realise a loss on suspended shares?

Mar 11, 2007 2 Replies
R

I'm planning on selling shares in Company A, having made a profit of around £10000. I gather that £1200 of this profit (£10000-£8800 CGT allowance) will be liable to Capital Gains Tax.



However, I also invested £2000 in Company B, which is effectively bankrupt and its shares are currently suspended (so I can't sell). Is there any way that I can realise this loss to offset against the gain made in my investment in Company A. I'm thinking that I might have to wait until the shares in Company B are de-listed to realise the loss. Am I right?



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R

You don't need to sell them to realise the loss. You can give them away.

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J

You can get relief on the basis that the shares have negligible value. If they are on this list

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, you can do it automatically, and it will be accepted. Otherwise, you can ask them to consider your claim -
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. Delisting of the shares will not in itself enable you to make this claim. Companies can go private, and still be worth something.

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