I have an overdrawn directors loan account question. The loan is significantly overdrawn.
Can the director introduce a private asset eg. a very valuable oil painting, to the company, which is worth more than the loan in value but is not related to the company trading activities. Then start to repay the loan account gradually and when repaid take back the asset? Would HMRC find this acceptable or would it be seen as avoiding tax and so better to just declare and pay.
Posting as anonymous has this treatment has been suggested to me but it doens't feel right.