Can this happen?

Can this happen?

Didn't find your answer?

The situation is this:

Husband is director/shareholder, wife is shareholder, they want a loan from the company.  Can they take £4900 each to keep under the benefit in kind limit or would they be deemed to be the directors by virtue of their relationship?

I've had a look and can't seem to find the answer.

Thanks in advance for anyone that can help me.

Replies (6)

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By GW
22nd Nov 2013 12:15

Yes

Be careful, the £5,000 limit applies to loans to employees, the fact that one is also a director is irrelevant.

 

In addition you need to be aware of the rukes under s.455 Corporation Act 2010 regarding loans to participators.

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By mrshamilton
22nd Nov 2013 13:21

Sorry I meant that as the wife isn't an employee would the money be deemed to be the directors because his wife is a shareholder only.

 

I'm ok with the S455 rules, the loan will be cleared before the year end so we should be ok.

 

 

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By Steve Kesby
22nd Nov 2013 13:31

It includes relatives

The BIK legislation applies to loans made to the employee or a relative of the employee, so the £5K limit will apply to both loans.

For 2014/15 the threshold increases to £10K though.

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By JCresswellTax
22nd Nov 2013 14:13

Steve

What do you think in the case that the wife is also a director of the company?

I would think in those circumstances she has enough responsibilities to merit her own £5k limit - do you agree?

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By Steve Kesby
22nd Nov 2013 14:15

Gosh...

... what a novel idea. Giving the fairer sex a bit of responsibility. How very modern! :)

Yes. I agree. Just answer the question syndrome going on over here.

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Euan's picture
By Euan MacLennan
22nd Nov 2013 14:26

Steady on!

Company secretary should be enough responsibility for a wife! :¬)

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