Participators’ loan was released when settlement agreement made
In S England and another v HMRC [2023] UKFTT 313 (TC) (15 March 2023) the FTT considered the timing of the release of a debt owed by the shareholders in a close company to the company ruling that the release occurred when the agreement for the release was entered into rather than when the conditions for the release were satisfied.
The two appellants were the sole shareholders and directors of a company which provided car finance to the motor trade. It entered liquidation in 2012 and in October 2013 the appellants entered into an agreement with the liquidator under which they were to pay £100 000 by instalments over two years to settle their debt to the company of £1m. Under the agreement if they failed to make any of the instalment payments the whole of the debt would...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
Participators’ loan was released when settlement agreement made
In S England and another v HMRC [2023] UKFTT 313 (TC) (15 March 2023) the FTT considered the timing of the release of a debt owed by the shareholders in a close company to the company ruling that the release occurred when the agreement for the release was entered into rather than when the conditions for the release were satisfied.
The two appellants were the sole shareholders and directors of a company which provided car finance to the motor trade. It entered liquidation in 2012 and in October 2013 the appellants entered into an agreement with the liquidator under which they were to pay £100 000 by instalments over two years to settle their debt to the company of £1m. Under the agreement if they failed to make any of the instalment payments the whole of the debt would...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
