That's a very interesting case. Definitely agree that the capital loss relief is available if the income argument fails. In hindsight, I bet if he'd have documented the deal at the time as £2m debt in exchange for equity and had a good logical/reasonable valuation of say £50k on the equity then he'd have been able to claim £1.95m as a capital loss and the other £0.05m against his income tax
That's a very interesting case. Definitely agree that the capital loss relief is available if the income argument fails. In hindsight, I bet if he'd have documented the deal at the time as £2m debt in exchange for equity and had a good logical/reasonable valuation of say £50k on the equity then he'd have been able to claim £1.95m as a capital loss and the other £0.05m against his income tax
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