grumpsimus
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Post by grumpsimus on Jan 30, 2024 12:21:23 GMT
I hold shares in the above company, fortunately not too many. It went into Administration on 15 January and the Administrators have 8 weeks to produce their report. The general consensus appears to be the Administrators are the only people likely to gain and lenders are likely to get little or nothing. In these circumstances they shares would seem to have no value.
The shares were issued under the EIS and where a loss is made this can be offset against CGT or Income Tax. This would at least salvage something from the wreckage of Ablrate. Does anyone know when you can claim the shares have nil value?
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iRobot
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Post by iRobot on Jan 30, 2024 12:32:35 GMT
In your situation I'd be tempted to await the initial Admin's report and see what their prognosis is. If they use phrasing along the lines of 'returns unlikely' to shareholders or even just more senior creditors, then I'd be happy to make the claim then but be prepared to make a reversing adjustment in a subsequent period should some returns be forthcoming. (In other words, I wouldn't be comfortable trying to squeeze it into the current return  ) |
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markb
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Post by markb on Jan 31, 2024 10:19:58 GMT
From HMRC's guidance (https://www.gov.uk/guidance/negligible-value-agreements):
Do you think that you have enough info to show negligible value yet? Or, as iRobot suggests, would you prefer to wait for a statement from the administrators that there's unlikely to be a distribution to shareholders?
For example, Ablrate has ceased trading, is in administration, and the FCA have published the directors' opinion that the firm is insolvent (https://www.fca.org.uk/news/news-stories/aviation-and-tech-capital-ltd-trading-ablrate-enters-administration).
From HMRC's internal manual (https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg13145):
Do you think that an HMRC employee would accept that Ablrate shares are currently of negligible value?
This isn't advice; you need to make your own decision.
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grumpsimus
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Post by grumpsimus on Jan 31, 2024 12:20:39 GMT
Thanks for your replies. I wasn't thinking of msking Negible Value Claim (NVC) this year, but with next years return.
Clearly the Statement of Affairs (SOA) from the Administrators is the key document. I understand that the order of distribution from any money collected by the Administrators is:
1 Administrators fees
2 Preferential creditors
3 Secured creditors
4 Unsecured creditors
5 Shareholders
In these circumstances it is highly unlikely that there will be any payout to Shareholders.
markb,
I don't think that HMRC would currently accept Ablrate shares as NVC. However, I expect they will after a SOA indicating any returms to shareholders are very unikely
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