Q&A: losses occurred under irrecoverable loans

In our regular tax Q&A series, Croner Taxwise adviser Sohail Butt considers whether a directors’ loan which cannot be repaid will occur capital gains tax (CGT) losses

Q: My client has made a directors’ loan to his personal company (he is the majority shareholder) which now cannot be repaid. Is there a loss for CGT and if so, is it a ‘clogged loss’?

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