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Carillion and CGT

Practical Issues
ExFM
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Carillion and CGT

#112933

Postby ExFM » January 24th, 2018, 7:46 am

I have a holding in Carillion as most people are aware has been forced into Compulsory liquidation. The last price on the stock exchange is 14.20 but I assume to me it is worthless.

The only silver lining to this is I can use the tax loss that is outside the ISA against some capital gains, but I am not sure how this will work or the amount. I would typically expect my capital gains to be worked out by my broker (AJ Bell) and assuming I keep it below the limit then I put noting on my return. However I assume in this case this will not appear on my year end statement. So can I just assume that the holding is worthless and offset it against gains elsewhere?

I am only trying to work this out now so that decide on the amount of gains that I want to take before the end of the tax year.

Any thoughts appreciated.

ExFM

Alaric
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Re: Carillion and CGT

#112939

Postby Alaric » January 24th, 2018, 8:15 am

ExFM wrote:The only silver lining to this is I can use the tax loss that is outside the ISA against some capital gains, but I am not sure how this will work or the amount.


The key words are "negligible value claim".

Here's some material

https://www.gov.uk/government/publicati ... essment-he
https://www.gov.uk/guidance/negligible-value-agreements

You would have a choice of tax years in which to use the CGT loss. What isn't known yet is whether such a loss would be accepted for the 2017-18 year. With a relatively widely held stock, you might hope for clarification sooner rather than later.

ExFM
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Re: Carillion and CGT

#112949

Postby ExFM » January 24th, 2018, 8:58 am

Thank you Alaric. This is really helpful.


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