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 |
| Total | 439 900 |
What are the tax effects of the loan waiver for Holdings...
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