Loan written off - correct tax treatment?

Hi,

 

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?

Lorraine

 

 

Comments
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Forget about the directors - for now

BKD |
BKD's picture

Agree with BKD

Steve Kesby |
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Directors are the only shareholders

Lorraine |

Thanks Steve - given that one

Lorraine |

You can only try

Steve Kesby |
Steve Kesby's picture

.

blok |
blok's picture

@blok

Steve Kesby |
Steve Kesby's picture

.

blok |
blok's picture

What has s835 got to do with the question?

BKD |
BKD's picture

See CFM35120

Justin Bryant |