Loss on shares in your own company

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westcork

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I have trawled the Revenue website to no avail on this question. If you invest money in a limited company as a founder / director and the company is wound down, as an individual can you claim a loss on that investment on your personal form 11 to carry forward? Thanks
 
Well if you liquidated the company you would if liable for CGT on your initial investment (assuming you had made a gain on your initial investment) therefore I'd conclude that if you liquidated the company and suffered a loss on your initial investment then you'd be able to carry that loss forward to offset against future capital gains.
 
Why did you invest in share capital?

Was it part of a tax incentive scheme or did you convert a directors loan in an insolvent company to create a capital loss?
 
Thanks both - It is a loss I am dealing with and it was part of a tax incentive scheme - BES / Seed Capital Relief - does that make a difference?
 
westcork said:
Thanks both - It is a loss I am dealing with and it was part of a tax incentive scheme - BES / Seed Capital Relief - does that make a difference?
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Yes, where relief was granted for income tax there is no relief for CGT. Check with your accountant for the specifics.

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