Please can someone confirm for me the treatment of potential S455 tax / including the write off dividend on the director’s tax return, for a director that has gone bankrupt.
The director of a company has built up an o/d director’s loan account during the course of the year, which will not be able to be repaid. Therefore, I plan to show the loan as written off in the accounts / tax return, and show the related dividend on the director’s tax return.
My question is, as the bankruptcy is currently going through at what point will the director know that the income tax liability has been written off (he has informed the official receiver the o/d loan account is part of the bankruptcy) and at what point and by who will this be confirmed?
Thanks for any help or pointing in the right direction