R RugbyBoy Registered User Messages 146 6 Nov 2014 #1 Hi All, I own two limited companies one of which needs some money for investment. Can I loan money from company A to company B as a controlling director If so what interest rate should I charge and is it tax deductible? Many Thanks RB
Hi All, I own two limited companies one of which needs some money for investment. Can I loan money from company A to company B as a controlling director If so what interest rate should I charge and is it tax deductible? Many Thanks RB
J Joe_90 Registered User Messages 2,222 6 Nov 2014 #2 If you own the shares in both ie they are not a group than you are withdrawing the money and loaning it to the other. Company law limits the amount that a director can take by way of loan to 10% of the net assets of the company. Anything in excess to this is illegal. There are also BIK and withholding tax implications. You should ask your accountant for advice on how to structure finance if it's not a group.
If you own the shares in both ie they are not a group than you are withdrawing the money and loaning it to the other. Company law limits the amount that a director can take by way of loan to 10% of the net assets of the company. Anything in excess to this is illegal. There are also BIK and withholding tax implications. You should ask your accountant for advice on how to structure finance if it's not a group.