Self assessment and also Director of Ltd company. Can I offset aggregate losses?

Jan 27, 2012 4 Replies

Hi all. I hope you can help.



I complete a self-assessment form every year and pay a small amount of income tax as a result.



However, I am just in the process of starting a small limited company, (it is in a different type of business altogether and I am the only director). But I will be using my own money to fund the new company for the first year or two and for that period, (at least), I will not pay myself a salary and it will not make any profit.



Can I claim my personal investment to the company against tax on my self-assessment form? I don't regard it as a loan to the company as it will not be paid back.



Many thanks.



Howard.


No.

You might to regard it as so, but the law will.

Why not? Why would anybody make an investment in a company that they didn't expect to get back? (That's a rhetorical question, as any answer that you could reasonably give serves the purpose of justifying why the revenue treat it as they do)

tim

Hi. Yes, I see your point. But it would actually suit me better if I could claim it against my self-assessment this year, - rather than against the limited company in a few years time. Is there a way of doing this, do you think?

Ahh, OK. Thanks for the replies everyone. It was certainly worth asking :)

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