Treatment of Directors Loans in a Voluntary Liquidation

Our long established family business is going to be liquidated in a Voluntary Liquidation to allow dispersal of assets to shareholders, some cash and premises. The business is fully solvent and there will be no outstanding liabilities. However in this case there is an unpaid Directors Loan to myself - I would be due more than enough of the asset liquidation to pay back the loan. How does this work?

Surely you are taking professional advice on this - large amount of issues in these cases.

no outstanding liabilities

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However in this case there is an unpaid Directors Loan to myself

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Thats a contradiction in terms.

There is CGT in the company, CGT for the shareholders, Retirement relief implications, Stamp duty, possibly VAT.

Yes you should always seek accountants assistance in any such dealings as if you get things wrong you could end up with additional tax/costs fees!!

Thanks. In honesty our accountant only has basic information on liquidations and has advised I seek a liquidation specialist who can carry out the work. Some of the liquidators I've approached are recommending third party tax advice to ensure things are handled appropriately because of company structures involved. Its looking like thats my next course of action

You have an accountant who is not providing you with much of a service. Clearly a comprehensive plan has not been put in place.

It should not be get tax advice on liquidation.

It should be that the tax advice suggested liquidation.

Give the rest of us a bad name. Best of Luck.