Is Loan Write off Taxable?
Mr A is sole director/Shareholder of Company
Mr B joins Company and is given 50% of the share capital and
becomes a director.
Mr B personally loans company £25,000
Mr B agrees to have £25,000 loan written down to £15,000 due to
Mr B leaving company after disagreement with Mr A.
Accountants treat £10,000 write off as income chargeable to corporation tax
Is this correct?
Thanks in advance