Taxation, Director resignation and Limited Company share disposal

[Anon_2011_2011]

Hi

I am looking to resign the directorship of a small limited company in which I own 33% of the shares.

If sale of the share capital results in a loss can this be offset against CGT and future income tax?

Would I still be considered to be a Connected Person if the shares are sold after resigning as a director? I noticed there is a suggestion that you may not be classified as a Connected Person in terms of claiming a CGT loss if it is for 'genuine commercial acquisitions or disposals of partnership assets'.

Any advice very much appreciated.

 

[Lisa Thomas]

You may want to post your query under the accountancy section of the forum.

 

[SteveHa]

A capital loss can only be carried forward and relieved against future capital gains, not income. In limited circumstances (which don't seem to apply here) they can be relieved sideways in the year that the loss arrises against income.

A sale of shares at a loss does, indeed, create a capital loss.

Assuming that you are not connected to any other director's, and that you dispose of your shares, then you will cease to be a connected person.