I know it's a busy time so will appreciate any contributions.....
I have a client who was a partner in a two partner business. The final accounts of the partnership showed that my client was owed a substantial amount and his partner was overdrawn, so effectively he was owed the amount from his ex-partner.
After the cessation of the partnership his ex-partner was made bankrupt and he has never recovered any of the money owed to him re his partner's account.
Is this a capital loss for tax purposes under S253 TCGA 1992 - "loans to traders". The balance of his partner's account could have been a mixture of capital introduced and accumulated profits so it doesn't seem to fit into the category of a "loan", but I can't find anything more specific.
Is it a loan to his ex-partner which would qualify as a loan to a trader?
- Goodwill gesture for providing work 399 11
- What would you do in this situation? 85 5
- Filing a P87 (professional fees) before year end. 118 2
- Recommendations for payroll/AE software? 594 13
- More HMRC on gov.uk 621 11
- Rollover relief - when does gain crystallise in this situation? 70 1
- Offshore company transferring assets to a UK individual. 338 14
- Interest Free Loan - Salay Sacrifice? 240 4
- Research and development - repayment timescale 216 5
- VAT reconciliation and VAT return on Sage 95 2
- Sole trader hid directorships. 376 6
- Halloween - do you celebrate it? 1,386 46
- Enquiry into tax return - how co-operative would you be? 293 5
- NOVA 548 1
- Clearing payments on account/ Sage 50 268 10
- Regional Development Grant 114 4
- Problem ex client...again.. 2,381 21
- Company car without a salary 221 2
- Charity donations 1,072 21
- Interest on HMRC contract settlement 145 2
- Bonus Bonds 389
- Insolvency and whistle blowing 376
- Transfer of funds into recently set up company 288
- TPR imposes first penalty notice fines 256
- Box 8 VAT Return - deposit payment 184
- Husband proposes to buy the car as Director unable to acess finance 171
- Finance Lease 155
- Company Car Lease 152
- Form 42 147
- Demerger Reserve 129