Transfer loan (cr bal) to other reserves
I have a client who is a has received a loan into their limited company from a family member. The family member has said they are not looking for this loan to be re-paid.
The issue the client is facing is that they are trying to tender for local gov't contracts/work and need their balance sheet to look better. The options I can think of are writing off the loan and transferring it to P&L if this is permissible, but what are the tax implications?
Or second option, is to transfer the credit balance to 'other reserves'. I'm not sure if this is permissible and if so what are the disclosure requirements?
Any comments would be appreciated even if just to point me in the right direction.
- Does anyone have an old version of Sage for sale? 126 4
- Problems viewing AWeb posts 72 2
- flat rate scheme 2,316 47
- Signed accounts for bank 630 14
- What route into accountancy would you recommend? 821 12
- Business lending another business money (UK) 285 7
- Deferring dividends on paper 154 5
- VAT Query on new build 90 1
- Restriction of trading loss and overlap relief 134 1
- CIC Abbreviated Accounts 141 4
- Family Partnership 228 5
- How to format Co-operative Accounts 82 1
- P11D Car Value 253 6
- NOVA declaration 103 1
- Business valuation advice 703 18
- Auto enrolment: What’s your plan? 1,501 16
- Are any of you members of The Institute of Financial Accountants - Accountnats certificate 1,222 23
- Can anybody recommend any software 288 2
- Stand alone practice management software 2,103 26
- 2011 Self Assessment Tax return form 181 1