Corporation tax on directors loan write off?

Company owes directors £50k, but is loss making and probably will never be able to pay it. It's sat as a liability on the balance sheet, making the accounts look bad to potential creditors. Directors want to write it off, so presumably a credit to the P&L account. BUT is corporation tax chargeable on it?

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Yes

BKD |
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So, because that's not a good idea ...

MBK |

Share capital won't help

Ken Howard |

.

blok |
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what!

carnmores |
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.

blok |
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well if they are writing off the loan cos they cant repay

carnmores |
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Conversion

BKD |
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.

blok |
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What would happen...

George Attazder |
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i thknk you are wrong on s131

carnmores |
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.

blok |
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exactly

carnmores |
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Insolvent

John McLane |
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