Can tax relief be claimed on a loan written off due to the debtor going into liquidation?

Company A loaned £10,000 to Company B, which has now gone into liquidation with no funds available for creditors.

The companies are not connected in any way.

Firstly how should the transaction be shown in the accounts.  As an exceptional item on the P & L account?

Can the resulting loss be carried back to the previous year and a refund of corporation tax claimed?

 

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Corporate Loan relationship

Paulsoper |