A client has guaranteed the overdraft run by his one-man engineering company. Since Brexit his turnover has dwindled to almost nothing. He has an overdrawn DLA and the company owes the bank a substantial sum of money. He will have to sell his house to pay the bank and is reconciled to that.
If the company ceases trading, the only substantial creditor will be the bank and the only large debtor will be his DLA.
Is he stuck with both a loss fo CGT and tax on the deemed dividend arising on the wite-off of the DLA? Any thoughts others may have would be appreciated.