We have a client company consisting of a current director/shareholder and an ex-director/shareholder. Both have credit loan account balances, totalling >£200k, created by dividends voted, in the past, but not drawn.
Both wish to waive/gift/write off their entitlement, leaving both loan accounts at zero. The company's solvency is the primary concern, for both.
Question – is this taxable in the hands of the company? If so, is there any way to avoid it, legally, by drawing up deeds of gift etc?