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Where Taxpayers and Advisers Meet

Limited Company Closure I am Guarantor for bank loan.

divot
Posts:7
Joined:Wed Aug 06, 2008 3:27 pm

Postby divot » Thu Jul 21, 2005 9:47 am

I was a director of the company and it ceased trading and eventually was dissolved in 2004. I was a guarantor for one of the loans. I have paid this loan off now out of my earnings 2004 – 2005 following the closure.
Can I get any tax relief from this loan repayment?

Please be gentle if the answers no, it was a lot of money (to me anyway)

jamesconstantine
Posts:143
Joined:Wed Aug 06, 2008 3:15 pm

Postby jamesconstantine » Thu Jul 21, 2005 1:01 pm

the answer can be yes. If the company was a trading one and the finance is irrecoverable and the company was a UK resident one, your losses are treated as capital losses. Please note that there are specific conditions regarding timing of claims.

James Constantine FCCA
http://www.taxadviceuk.com
FREE Weekly Tax Tips
JamesConstantine, Chartered Certified Accountants
http://www.taxadviceuk.com


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