Company A owes company B say £200k
Company a has 2 directors. Company B has the same 2 directors plus one other. Company B has been dormant for some time.
The directors agree to take over personal responsibility for the debt owed to company B. The inter related loan is therefore removed from the company balance sheet via the directors loan accounts.
Subsequently company B gets dissolved which means the Directors are effectively absolved of the need to repay the debt they have taken on.
Does this means the directors have made a capital gain on the "windfall"???
Or is there some other way if should be dealt with??
Thanks