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?
- Which tax returns can I submit? 178 5
- Cocaine anyone? 898 15
- SELLING A PROPERTY at LOSS/PROFIT - CAP GAINS ALLOWANCE 260 5
- Vat on new builds 66 1
- Using home as clients registered address 244 5
- VAT MOSS registration 99 1
- Anyone else still working this week? 473 15
- How much does the company pay 824 35
- HMRC property income enquiry 459 10
- Proof of identification 142 2
- When to provide S419 tax in the accounts 168 4
- Sole Trader change of accounting date 126 1
- Accounting for cash put into Ltd 313 5
- Childcare vouchers 375 8
- Is this a qualifying loan for interest deductions? 109 2
- New Enterprise Allowance 101 1
- VAT Notice 700/64 - claiming VAT on motor repairs 97 1
- two business from one premises 198 3
- VAT transfer on going concern on incorporation 77 1
- 10 Worst xmas presents for an accountant 382 4
- Accounting referance change & deficient accounts. 516
- corporate hierarchy 480
- Advice - 333
- Anyone had HMRC refusing to act on EPS database glitch? 281
- WWOOFers 270
- Art Gallery - Splitting a property between business and personal use 262
- The booking.com con 258
- Cocaine anyone? 238
- Tax liabilities in USA for warehoused products 234
- UK State pension paid in NZ 183