I know it's a busy time so will appreciate any contributions.....
I have a client who was a partner in a two partner business. The final accounts of the partnership showed that my client was owed a substantial amount and his partner was overdrawn, so effectively he was owed the amount from his ex-partner.
After the cessation of the partnership his ex-partner was made bankrupt and he has never recovered any of the money owed to him re his partner's account.
Is this a capital loss for tax purposes under S253 TCGA 1992 - "loans to traders". The balance of his partner's account could have been a mixture of capital introduced and accumulated profits so it doesn't seem to fit into the category of a "loan", but I can't find anything more specific.
Is it a loan to his ex-partner which would qualify as a loan to a trader?