Company with intercompany loan of c.£500k and bank loan of £1m and was sold to new owners. The new owners agreed to take on the bank loan with the £500k inter company to be written off.
I would like to enquire how this write off should appear on the p&l. Should it be shown as an exceptional item and what narrative should be used.
Secondly will this write off be taxable. I presume it will as the new owners are not connected to the company that the intercompany debt is due to.