BC Barn

I received an ex gratia settlement from my broker for an investment product complaint. The settlement is £40000, while the cost of the investment I paid initially was £34000. There is no breakdown on the settlement amount. For the difference between the settlement amount and the investment cost (£40000-£34000 =£6,000.00), it is the compensation for loss of potential income/gain as it is a guaranteed investment . No interest compensation was paid. (1) Do I need to do tax reporting for £6000? (2) If so, is it under capital gain or income tax? The investment is still kept by me as it is illiquid and cannot be sold now. (3) In the future, if I am able to sell it, is it correct that I should report tax as capital gain based on the sales proceeds and zero purchase cost (as I have received the investment cost from the settlement amount)? And, I don’t need to report until the investment is sold? (4) If there is coupon income from this illiquid investment, though principal repayment or early redemption is not possible due to illiquidity, is the coupon treated as income or capital gain? Many thanks

My broker has compensated/refunded for a product I purchased, including the original purchase price, cost paid, and promised return of the product at purchase. Is the compensation/refund taxable? I've kept the product but I plan to sell the product which has dropped significantly in value, can I still register as capital loss after I have got the compensation/refund? Thank you.

My spouse transferred a bond to me. When I sell it, I know I need to use the cost price my spouse purchased the bond to calculate CGT. I want to know if the capital gain or loss should be reported by my spouse or me? If there is a capital loss, can my partner report this so my partner can offset it with the capital gain, and I don't need to report anything? Thank you.

If I remit this income (UK corporate bond coupon interest) to the UK, do I declare the income under "remitted income" or "UK income"? I want to make sure I don't declare twice and being taxed twice. Many thanks

Thank you

For the director's loan lent to the company that is a new start-up, (1) for the interest income earned from the "director's loan" which would be placed as "deposits", is it treated as "trading income" for corporation tax purpose? (2) as the director's loan is interest free, do I need to pay income tax for the interest income generated by the company under my own self assessment? I'll only receive dividend if there is any profit. (3) can I offset the "deposit interest income" by the expenses used to set up the business (advertising, equipment, staff salary, training)? As the business is a new start up, there is a high possibility that there is no or very minimal income from the business in the first two years. Income from the company would therefore mainly or solely from the interest earned from the deposit (the director's loan). Thank you

I have an offshore solely-owned private unlimited company which is set up for investment and providing consultancy services. For the investment income or capital gains received by the company, and for the savings interest received by the company, do I need to report as personal income in addition to the corporation tax? I understand if the company pays me dividend, I'll need to pay tax. However, I don't know if the company's investment receives income, do I need to report as personal income tax + the corporation tax. That would mean I need to pay twice. As this is an offshore company, corporation tax is also paid in the overseas country. I understand there is a tax treaty between UK and that overseas country, how do I report the tax I paid in the overseas country? Thank you

Hi For remittance basis, do I need to pay income tax on coupon received from UK corporate bonds that is not remitted to the UK? The UK corporate bond is booked in an overseas bank account. Thank you

Hi HMRC, Thank you. Am I correct to say that: 1. Income from a UK corporate bond kept offshore (in a non UK financial organisation) can be treated as non UK source of income as the income is received and kept offshore. 2. For income tax reporting purpose, I only need to report the tax based on my own circumstances, and the fact that the bond was transferred to me from my spouse is not relevant. Thank you

My spouse had gifted me a UK corp bond which is now in my non UK account. My spouse reported income on an arising basis, and I report income on a remittance basis. For the coupon income received from this UK corp bond, I would not remit it to the UK. In this case, is it correct that the income is not taxable as long as I have not remitted it to the UK? And, I just need to declare the income in the non remitted item on the SA109 form? For my spouse, is there any reporting he needs to do? Many thanks