Company Loan to associated company

Company Loan to associated company

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I wonder if someone can help....

2 companies owned by the same individual. Company A has money in the bank which the director/shareholder would like to loan directly to Company B - as opposed to withdrawing the money as a dividend from Company A and paying tax to then invest personally into Company B

Am I right in assuming that as long as Company A charges a commercial rate of interest to Company B then this would not have any other tax implications?

Matt

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By johngroganjga
30th Sep 2014 12:48

Interest is irrelevant. There are no tax implications in any event.

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