Director A takes out a bank loan (as he has security) then introduces it into his company.
If he charges the company the same rate of interest as he is paying so no gain no loss situation.
Does he need to report this on his personal tax return as interest received and then allowable interest on the loan as a deduction?
Or report nothing as its a contra?
Replies (1)
Please login or register to join the discussion.
Yes
Report the interest received from the company but also look at claiming relief for interest on a loan taken out to lend to a close company.