Directors Loan Account Write Off

Directors Loan Account Write Off

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Small co, two director/shareholders - one now left and overdrawn loan account written off.

Initial thoughts are that this will need to added back in CT comp in due course - can anyone confirm that this is correct or are there further factors/special circumstances that require consideration before jumping to general sweeping conclusion?
Nick

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By thehaggis
27th Aug 2008 23:35

Why add back

Writing off the loan is an expense of the company. The release of the loan will give rise to relief under s419(4), but will also generate a charge under s420.


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