Shutting down losing Directors Loan

Shutting down losing Directors Loan

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Hi All,

I started a bit of an argument around striking off a company that has creditors, but can't afford to liquidate.

The reason for this post is to separate this question.
It may be simple, but I want to ensure that I get this right having never done it before.

The director will obviously be a creditor of the company who will lose out significantly.

He will not have any capital gains, but will have some income.

Is there any way to get the lost Directors loan money deducted from income.

Supplementary to that, if a deduction can be made...
If the deduction exceeds income, is there any way of carrying it forward against income in a future year?

It may be very simple, but I have never had any involvement with this exact scenario, so would appreciate some guidance or pointing in the right direction.

Thank you in advance.

Replies (4)

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By User deleted
17th Sep 2014 08:18

Converting the loan in to equity and claiming s.131, ITA/07 relief would have been an option but that is unlikely to work in your case

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By User deleted
17th Sep 2014 17:31

Out of interest
Hi,

Thank you for your response.

Out of interest as I have never done this before, what would be the process of doing your suggestion?

Also, how close to the submission of striking off could this be done?

Thank you in anticipation.

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By User deleted
17th Sep 2014 17:47

This involves some company law paperwork and tax issues. Unfortunately, this is not for a company getting struck off the register.

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By User deleted
17th Sep 2014 17:51

Any other options?
Are there any other options for relief against income for money he has put into the company when he strikes off.

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