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Director's Current Account

Can a Director offset a loss on Director's current account against personal tax?

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If a Limited Company closes and has insufficient funds to pay the Director(s) the balance of the Director's current account(s), can the "loss" in any way be offset against personal tax?

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09th May 2019 08:41

I looked at this a few years ago, I think the conclusion I came away with is that it was a capital loss, so claimable against capital gains only.

The DLA has to be in existence when the co was dissolved ie not written-off.

May well be wrong though ... happy to be corrected

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09th May 2019 10:56

Arguably it is not on either route. It is not a capital loss related to the company, as it would then have to be shares. However I did a case for a client a while back where we converted the loan into shares, and then when written off it was then a capital loss.
The second route with the link works fine "for trader". This loan is not made in the course of business, so when a client of ours tried this (before they moved to us it should be said) HMRC said no as not trading.

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