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Loan to company

06 August 2013
Issue: 4414 / Categories: Forum & Feedback , Business , Companies

A trading company is owned 50:50 by a father and his son. Some years ago, the father loaned £200,000 to the company, but it cannot afford to repay this. The father would accept £30,000 in full settlement of the loan and for the balance to be written off, but will the loan relationship rules apply?

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