My company has a loan debt from another private company. Recently this lender company has been dissolved. In that case, what would be tax implications for my company?
Arthur Weller replies:
From what you have written I understand that your company has borrowed money from another company and that the loan has now been written off, because the lender company has been dissolved. If the two companies are connected, there will be no tax implications for your company. But if the two companies are not connected, your company will be subject to tax for the amount of the writeoff. See www.gov.uk/hmrc-internal-manuals/corporatefinance-manual/cfm32030 and 35320.