UK Tax Questions? Ask a UK Tax Advisor for answers ASAP
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
The loan itself would be outside the scope of UK taxation as would its repayment, assuming that you were not a Director.
However, once the loan becomes forgivable, it becomes part of your emoluments and is taxed at your marginal rate, presumably, but not necessarily, through PAYE.
I am so sorry to have to rain on your parade.