Converting Share Premium into Director's Loan Account | AccountingWEB

Converting Share Premium into Director's Loan Account

When I first started my company, I invested a total of £5,253. This was for 6 shares at £1 each plus a share premium of £5,247.

Approximately 6 years later, I have realised that it might have been more sensible if I'd created a Directors Loan Account instead of the Share Premium Account, and I am now wondering whether it's possible to convert the Share Premium Account into a Directors Loan Account of £5,247?

Also for information, during the 6 years, I have transferred 5 of my 6 shares to my wife so I'm assuming the share premium value should be split 5/6 to my wife and 1/6 to me. Is this correct? Obviously this is important when considering the conversion of that account into DLA's.

I look forward to your answers and suggestions.

There are 3 comments. Login or register to view them.

Who the devil advised you to set it up like that in the first pl

Phil Rees |
Phil Rees's picture

Not possible

Anonymous |

The CA 2006 makes a capital reduction fairly straightforward for

max.lee |