Director's Loan Account

Hand-drawn sketch of a director, a trading company and a holding company with arrows showing a loan novated and an intra-group balance left outstanding

Novation of a Director's Loan to a Holding Company: Powell v HMRC Upheld by the Upper Tribunal

A director's loan novated to a new holding company was a taxable release, and the Upper Tribunal has agreed. What Powell v HMRC decided, approx £195,000 of tax and what to check.