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Where Taxpayers and Advisers Meet

Financial gift to a LTD company - does it affect tax?

Sholden
Posts:1
Joined:Fri Aug 18, 2017 8:58 pm
Financial gift to a LTD company - does it affect tax?

Postby Sholden » Fri Aug 18, 2017 9:05 pm

Hello,

Would a financial gift to a limited company affect taxation when it comes to the end of the tax year?

I.e. If I were to gift £20k to the limited company as a director and then pay myself £16k in dividends, would I essentially not have to pay any tax on such earnings?

Thanks

GlobalTaxAdviser
Posts:633
Joined:Fri Dec 05, 2014 1:18 am

Re: Financial gift to a LTD company - does it affect tax?

Postby GlobalTaxAdviser » Sat Aug 19, 2017 12:39 pm

its a loan to the company and there is no tax implication

Yes dividends is taxable and should be declared as such

I would suggest you take some professional advice on your limited company tax affairs.

Kind Regards

GTA

TDR
Posts:65
Joined:Wed Mar 16, 2011 12:56 pm

Re: Financial gift to a LTD company - does it affect tax?

Postby TDR » Sun Aug 20, 2017 4:22 pm

GTA is absolutely right. There is more than one way to structure this, some with a personal tax liability, and some without, depending on whether it's a gift of £20k or simply a loan.

You should be talking to a professional who can assist you.
[url]http://www.tdrtax.co.uk[/url]

25 Years UK personal tax experience


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