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?
- Deduction from Salary 229 7
- Sole properietor 37 3
- Mutual trading organisation has chargeable gain 73 1
- Redudancy 33 1
- Child Tax Credits - date of cessation of qualifying young person 40 1
- Redundancy pay for directors? 462 13
- VAT - Recharge 75 2
- Should Spanish VAT apply ? 344 4
- transitioning payroll 165 4
- Legal title not in the company name 189 9
- Can I take action against my accountant for incompetence? 2,593 59
- Should VAT be charged when land is transferred as part of a TOGC 160 3
- Director forgot to take salary for 2013/2014 2,749 30
- Car financed by employee 192 2
- PPR exemption - can it be due on a bigger area than 0.5 hectares? 132 1
- Entrepreneurs relief available? 625 16
- PPR CGT section 222 builds an extension 162 3
- Dividend payment date 2,199 37
- VAT online filing exemptions 181 2
- Employed (by own company) and Self Employed - Tax Efficiency 186 2
- Property exchange - 8-year legal delay following fall-out 621
- Cancelled 360
- SAGE Payroll Data for Import to MS Dynamics AX 342
- Cancelled 305
- Have you staged yet for auto enrolment? 278
- Probiz 268
- VAT on non-profit making clubs (ECJ VS West Dorset Golf Club) 225
- Free-standing washing machine - unfurnished lettings 224
- Phishing emails purporting to be from CIPFA? 200
- Is this UK incapacity benefit taxable in UK or Jersey? 170