Doing some due diligence for a client who is in talks to buy another business. The DLA is overdrawn but an agreement is in place to pay this back over 10 years (relevant note is below). Obviously, with the term being 10 years, the DLA will still be overdrawn when S455 would be due. Accountant for seller (who works for a reputable firm, hence why I'm seeking a second opinion) has stated that S455 will not be due as the loan is for a prescribed term and interest is charged. I think S455 would still be due on the outstanding amount at that date. Who is correct?
Directors Advances, Credits and Guarantees
Included within Debtors are the following loans to directors: £67,185. Loan payable over 10 years at
an interest rate of 2.25%.