I ran a small limited company which ran up losses of around £20k - this was money I lent to the business. The company is still open and active but has now finished trading. I am/was the sole director and source of funds.
What is the most effective way to get any silver lining from the £20k loss? At the moment I think there are two options;
-close the company and carry forward the loss on my self assessment as a capital loss, until such a time as I can benefit from it (if at all)
-keep the company open and in the future, use the existing company as the legal entity of any future business I may have, thus carrying forward £20k loss to offset against future profits. Any future business would not be the same business activity. I'm slightly reluctant to do this as I'm not sure my accounting has been 100% correct and I wouldn't want any mistakes made in the former business to jeopardise the new business. However is there a six year rule on keeping paperwork/accounts etc available for inspection, so beyond six financial years it would be all fine?
Many thanks in advance for your ideas and opinions.
What is the most effective way to get any silver lining from the £20k loss? At the moment I think there are two options;
-close the company and carry forward the loss on my self assessment as a capital loss, until such a time as I can benefit from it (if at all)
-keep the company open and in the future, use the existing company as the legal entity of any future business I may have, thus carrying forward £20k loss to offset against future profits. Any future business would not be the same business activity. I'm slightly reluctant to do this as I'm not sure my accounting has been 100% correct and I wouldn't want any mistakes made in the former business to jeopardise the new business. However is there a six year rule on keeping paperwork/accounts etc available for inspection, so beyond six financial years it would be all fine?
Many thanks in advance for your ideas and opinions.