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Where Taxpayers and Advisers Meet

Loan to new Limited Company from own Limited Company

dodger
Posts:11
Joined:Wed Aug 06, 2008 3:23 pm
Loan to new Limited Company from own Limited Company

Postby dodger » Tue Sep 26, 2017 9:49 am

Would you be able to help please?
My husband and I are equal shareholders in our current limited company, we would like to set up a new limited company to purchase BTL property, as we have a large cash excess in our current limited company can we loan money to the new limited company which we will be joint shareholders as well?

1. Is there a limit on the amount we can loan?
2. Is there a time limit on paying back the loan?
3. Do we have to charge interest at the HMRC rate, currently 3% I understand to the new company?

Just don't want to go against any tax or company laws

Thank you

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Loan to new Limited Company from own Limited Company

Postby pawncob » Wed Sep 27, 2017 3:24 pm

Yes, intercompany loans are allowed, with no restrictions. They can be interest free, with no stated repayment date.
But there are different viewpoints: http://www.ukbusinessforums.co.uk/threa ... an.305139/
With a pinch of salt take what I say, but don't exceed your RDA


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