Is Loan Write off Taxable?

Hi,

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 

 

Comments
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Yes

BKD |
BKD's picture

Not so sure

Cloudcounter |

It's a loan relationship credit...

Steve Kesby |
Steve Kesby's picture

Depends

tax for fun |

Connected parties

BKD |
BKD's picture

Ditto

Steve Kesby |
Steve Kesby's picture