Hello, I'm Keith and happy to help you with your question. With respect I think you are in danger of confusing two different taxes. Clearing the Director's Loan Account is tax neutral. Any interest paid on the loan is chargeable against the profits of the company.
Only profits made in the year are chargeable to the company through Corporation Tax. What is in the company is irrelevant in this context.
What will be chargeable to Capital Gains Tax will be the gain on the original price paid for the shares in the company and the amount received on the sale. That is a liability on the owner of the shares when they are sold. There is an Annual Exempt Allowance of 10K and the balance of the gain is taxed at 18% or 28% depending on the income level of the seller in the year of sale. At this point I am stuck and cannot go any further without more information, but may have resolved your difficulties.
Please remember that a company, indeed any asset, is only worth what a buyer is prepared to pay for it; this may well differ from the book valuation!
Thank you for your response i think i am slightly confused.
The £1,000,000 i receive will be in terms of the following:
A property to the value of £499,000
Bank loan repayment of £300,00.
Balancing payment of £201,000.
It is my understanding there will be 3% of stamp duty to be paid on the property by me.
Bank loan repayment will be tax free so there it would be the £201,000 which would be the capital gain, which i had hoped could be reduced by the director loan repayment.
Apologies for my lack of knowledge