Loan to director for property investing
My husband and I intend to buy a few buy to let properties over the next few years in our own names (if you replied to my previous posts on this, many thanks, this is the route we choose now). My husband has a limited company he has been operating for the last 5 years which accumulates about £110k in retained earnings. He is working fulltime from last year, so the company is currently dormant (still submitting all the required submissions). He may use it in the future if reverting back to contracting, therefore we have not closed it. My question is can the company lend us the funds to deposit for the rental property ? I understand we have to pay interest to the company but then can claim this via the interest expense of the property. Do you see any problem with HMRC for doing this ?