Client 100% owned 2 Ltd companies, one went into liquidation and the other bought the assets from the receiver
Client owns 100% of Co A and Co B. Co B was struggling financially and Co A settled many debts on its behalf creating a £40K inter Co loan account debtor.
Co B eventually went bust and Co A purchased the assets in a deal with the receiver. This left the inter co debt that will never be paid.
This debt must now be written off in Co A as it is no collectable but I was wondering whether it would be tax deductable as a bad debt given the connected status of the Director in both Companies?
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