Peter Rayney (Peter Rayney Tax Consulting) provides practical advice to company that wishes to waive part of a debt owed by one of its subsidiaries.
Question
Barnsley Holdings Ltd (‘Holdings’) wishes to ‘waive’ £300 000 of the £439 900 due from one of its 100% subsidiaries Rusby Trading Ltd (RTL) as shown in its draft accounts for the year ended 30 September 2017. The inter-company debt of £439 885 relates to the following outstanding items (allocating ‘payments’ against the oldest items first):
£
Funding for RTL additional working capital
200 000
Management charges for RTL (2016)
125 600
Management charges for RTL (2017)
114 300
...
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Peter Rayney (Peter Rayney Tax Consulting) provides practical advice to company that wishes to waive part of a debt owed by one of its subsidiaries.
Question
Barnsley Holdings Ltd (‘Holdings’) wishes to ‘waive’ £300 000 of the £439 900 due from one of its 100% subsidiaries Rusby Trading Ltd (RTL) as shown in its draft accounts for the year ended 30 September 2017. The inter-company debt of £439 885 relates to the following outstanding items (allocating ‘payments’ against the oldest items first):
£
Funding for RTL additional working capital
200 000
Management charges for RTL (2016)
125 600
Management charges for RTL (2017)
114 300
...
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:
