TAX LOSSES14 May 2025 09:53
Hereβs a result of some googling, that may become helpful! π€
If a shareholding in a Hargreaves Lansdown (HL) ISA unlists from the London Stock Exchange (LSE), moves to your share and funds account, is subject to a Reverse Takeover (RTO), and then goes into liquidation, you can claim a tax loss on the full Β£28,000 original investment. This is because the shares are no longer listed, making them ineligible for ISA tax relief, and the RTO and subsequent liquidation represent a loss of capital.
Here's a breakdown:
Unlisting from LSE:
When a share unlists, it's no longer traded on a recognized stock exchange, which is a requirement for holding shares within an ISA.
RTO and Liquidation:
These events further indicate a loss of investment value, as the company is effectively being taken over or going out of business.
Tax Loss Claim:
Because the investment is no longer within an ISA, and you've experienced a loss, you can potentially claim the loss on your tax return.
Important Notes:
Claim Procedure:
You will need to report this loss to HMRC (Her Majesty's Revenue and Customs) through your tax return. You will likely need to provide documentation of the original investment, the RTO/liquidation events, and the final value of your investment (which may be zero).
Tax Loss Relief:
Tax loss relief allows you to offset the loss against any capital gains you may have made in the same tax year.
ISA Allowance:
Taking money out of an ISA, even through a liquidation, means you will lose that portion of your ISA allowance for the current tax year.
For specific advice on claiming the tax loss, it's recommended to consult with a qualified financial advisor or tax professional.