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Waiver of inter-company debt between group companies


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


439 900

What are the tax effects of the loan waiver for Holdings...

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