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If director's loan account is written off after appointment of liquidator is this treated as capital distribution?
I have a profitable trading company. The company provides consultancy services, has been trading for 4-5 years and it has no assets/liabilities other than an overdrawn directors loan account and positive company reserves. The company is going to be wound up. If the directors loan account is written off after a liquidator has been appointed is this treated as a capital distribution and subject to CGT?