9 months into financial year an employee (sole director and shareholder's daughter) becomes the sole director and shares transferred to her. Prior to becoming a director she accumulated a loan account from receiving monies on top of salary. The same thing happened after becoming a director and therefore has an overdrawn loan account. There are no reserves to pay dividends to clear.
My query is does the loan account prior to becoming a director get lumped together with the post directorship loan with all the tax and interest ramifications etc.
Many thanks in advance for any help you may give