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?
- DLA Write Off Tax Implications 406 8
- Nominal Codes 126 6
- Do I need to revise VAT returns 52 1
- Option to Tax 40 1
- FPS responses ... 315 11
- Ouch. Those penalties sting 1,096 23
- Tax credits and Concentrix 70 1
- HMRC repayment has gone to wrong bank account - quickest way to resolve? 224 4
- Car fuel benefit - changing basis 107 1
- CGT on transfer of shares to Holding company 192 7
- Tax relief on loan interest paid by a property investment company 121 4
- Deductible or not ? Working out of hotels /coffee shops 190 3
- Filling in my self assessment 859 16
- Missing PAYE codes 172 3
- Capital gains on tax return - attachments 138 4
- Main residence relief - husband and wife scanarios 257 3
- proposed dividends 469 19
- How does one compete? 555 7
- Help with small charity CT600 please!! 387 4
- Should small companies be audited? 1,141 45
- Sanzar 476
- Digital marketing focus group 391
- Sage troubleshooting for employee who has previously claimed SMP 368
- Are commercial mortgage cashbacks subject to Corporation Tax ? 311
- Continuity Agreement 310
- Sainsbury's mangement 309
- Avanti Accounts 306
- Buyback 279
- Entrepreneurs' relief (ER) for EMI shares 226
- Iris and Miicrosoft 365 198