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Mystery of £3M loan to boss of bust wholesaler

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I read in the Sunday Times business news, with interest, about the demise of Palmer & Harvey and the allegation that the directors of the failed wholesaler altered the terms of interest  free loans for the company's former boss.  The terms were later changed to state the debt was only repayable in the event of a sale of his shares in the business -now all but impossible with P&H in administration.  The loan taken out was £3.4M.

How does this work with regard to the director's loans and impact on his self-assessment tax return?

Curious for any replies but not seeking advice 

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By Portia Nina Levin
03rd Jan 2018 17:12

Is it a close company?

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By Malcolm McFarlin
04th Jan 2018 09:43

The ultimate company is a holding company which is a Plc.

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By Portia Nina Levin
04th Jan 2018 10:44

In which case, it seems unlikely that there are any implications beyond the P11D/PAYE/NI position, which is for the company to deal with.

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