Limited company loan subject to S419 ICTA 1988 rules?
I wonder if tax per s419 ICTA 1988 rules, or any other similar rules, would be due on the following:
The limited company in question has an accounting year-end date is 31 August 2011. On 1 February 2011, it lent £40000 or so to an individual not related to the company in anyway. This person was merely a personal friend of the company's Director. This individual intends to repay it in full by 31 August 2012, but there is a chance they may not. There also exists the chance of the company never recovering a penny from the individual. But that's not really the issue right now. Is any tax due on the £40000 (similar to S419 rules, where the tax would eventually be repaid on repayment of the loan) or do no such or similar rules apply; meaning that, for the time being, the amount should merely be shown upon the Balance Sheet as either 'other debtors' or 'investments'?
Any advice would be much appreciated.