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  1. #1
    Junior Member
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    Default Tax on bankrupt Halifax shares

    My accountant is telling me I have to pay annual tax on shares that are frozen in my Halifax (bankrupt) trading account. This seems incredible to me, because not only can I not access the shares, when we finally get some payback from the liquidators, everyone will get the same % regardless of what shares they invested in. The shares I invested in are gaining about 20% pa, but I’m likely to actually come out of this about -15% in the red.
    Surely I shouldn’t have to pay annual tax on ‘gains’ in this instance?

  2. #2
    Advanced Member
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    Aug 2012
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    Quote Originally Posted by JunoK View Post
    My accountant is telling me I have to pay annual tax on shares that are frozen in my Halifax (bankrupt) trading account. This seems incredible to me, because not only can I not access the shares, when we finally get some payback from the liquidators, everyone will get the same % regardless of what shares they invested in. The shares I invested in are gaining about 20% pa, but IÂ’m likely to actually come out of this about -15% in the red.
    Surely I shouldn’t have to pay annual tax on ‘gains’ in this instance?
    .......on reflection I don't know enough about your circumstances to add a post......
    Last edited by Bjauck; 23-02-2020 at 10:19 AM.

  3. #3
    ShareTrader Legend Beagle's Avatar
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    Auckland
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    Quote Originally Posted by JunoK View Post
    My accountant is telling me I have to pay annual tax on shares that are frozen in my Halifax (bankrupt) trading account. This seems incredible to me, because not only can I not access the shares, when we finally get some payback from the liquidators, everyone will get the same % regardless of what shares they invested in. The shares I invested in are gaining about 20% pa, but I’m likely to actually come out of this about -15% in the red.
    Surely I shouldn’t have to pay annual tax on ‘gains’ in this instance?
    Hello JunoK,
    Welcome to the forum.
    I understand this Helifax situation is a real can of worms.

    I can't give specific advice without full knowledge of all relevant facts but:-
    If I were you I would have another sit down with your accountant and start talking in absolute terms along these lines.
    1. There is no guarantee whatsoever I will recover anything from the liquidator.
    2. Please write the entire amount off and if we recover anything in the years ahead and part of that recovery constitutes taxable income we will account for it in the tax year in which the recovery is received.

    If the sum involved is significant and (s)he is not prepared to take a pragmatic approach it might be worth getting a different accountant on the job. Good luck.
    Last edited by Beagle; 22-02-2020 at 05:31 PM.
    No butts, hold no mutts, (unless they're the furry variety).

  4. #4
    Junior Member
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    Feb 2020
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    Many thanks Beagle

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