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A loaned B €1m. 50% was used to buy an asset and 50% to finance trading.
B subsequently sells the asset for €500k and pays this to A. A writes off the balance.
Is there guidance on how to allocate the repayment between revenue and capital?

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Posted by (Questions: 43, Answers: 5)
Asked on 20 January 2016 9:47 am
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I think Kevin means Company A does not get a deduction

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Posted by (Questions: 4, Answers: 3391)
Answered on 23 January 2016 6:56 pm

Thanks Alan.

( at 24 January 2016 2:26 pm)
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Peter it doesn’t matter. The write off of the loan is ignored in both companies. Company A does get a deduction for it and company B is not charged to tax on the income.

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Posted by (Questions: 12, Answers: 300)
Answered on 20 January 2016 11:42 pm