If a Limited company makes an Investment in a 3rd party of say £150k and the 3rd party company goes into liquidation and the investment is hence worth £nil. Is the investment treated as a write off in the p&l and is it allowable for corporation tax deduction?
Mehdi Surfaly
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Yes and no
Yes, it's a write-off to P&L, and no, it's not deductible for corporation tax (because it's capital).
Not enough info
You say invests in a limited company. If the investment is in shares, no deduction. However, if there is a loan and the companies are not connected, there should be a tax deduction under the loan relationships.