If a director has a credit balance on his loan account and then waives his right to this and it is written off in the company accounts; is this a trading loan or a non trading loan. The credit balance was money introduced into the company and used for the purpose of keeping the company trading.
Replies (3)
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One implication
If it's a trading loan, the taxable credit could be covered by trading losses brought forward.
Think carefully
There would have to be very special circumstances for me to consider this.