I have a client who made payments on behalf of a company of which she
was a director (now resigned). I feel I should be able to claim these
as a capital loss as there is no prospect of her being repaid. I have
checked this with my PI insurance helpline and been told that she
should have made a loan to the company rather than making payments to
creditors from her own account. I have read HMRC's helpsheet on this
and I can't see why she shouldn't get relief as long as she thought
she would be repaid, when she made the payments. She has paid out
£17,000 and I don't think anyone would pay that (£10,000 to HMRC)
unless they thought they would get the money back.
was a director (now resigned). I feel I should be able to claim these
as a capital loss as there is no prospect of her being repaid. I have
checked this with my PI insurance helpline and been told that she
should have made a loan to the company rather than making payments to
creditors from her own account. I have read HMRC's helpsheet on this
and I can't see why she shouldn't get relief as long as she thought
she would be repaid, when she made the payments. She has paid out
£17,000 and I don't think anyone would pay that (£10,000 to HMRC)
unless they thought they would get the money back.
The helpline person was not an accountant and didn't know how the
payments could be put into the accounts! I can see from Companies
House website that the accounts are late and perhaps they won't ever
get done but that doesn't change the fact that my client has made a
loan.
I think she should get capital loss relief for this but would be
grateful to know what others think!
