Write off Director's Loan an NCD?

Write off Director's Loan an NCD?

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Where a director's loan account debit balance is written, and the director is also a major shareholder, the write-off is deemed to be a schedule F distribution for purpose of the director's tax position. Is this write-off also classed as a non-corporate distribution when calculatinf the company's Corporation Tax liability?
Simon Hall

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By andymeeson
06th Sep 2006 10:24

Was, not is
For events prior to 1 April 2006, any distribution made to a participator who is not subject to corporation tax counted as an NCD.

Obviously, the above no longer applies for events post 31 March 2006.

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By stratty
11th Sep 2006 09:33

Loan benefit
Do not forget that any amount of loan written off incurs a benefit reportable on form P11D.

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