Loan written off - correct tax treatment?
Ltd Co A owed Ltd Co B £ 20k. Common directorships in both companies. Company B ceases to trade, so loan written off - £ 20k credit to PL a/c
However, I am correct in that this £20k should be chargeable to CT?
Looking at CTA 2010 s99, Pt5 Ch16 s574 states in relation to a loss incurred:
Relief may not be claimed for loans written off if the borrower and lender are 'connected persons'.
Would appreciate any thoughts if I have missed something?
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