Second Limited Company

Second Limited Company

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I have a limited IT company where I contract out my time to businesses. I am also looking to setup a separate limited company for old and classic car restoration. I would be the sole director of both businesses, though there is an option to make 1 or 2 other people part or joint directors on the restoration business if it makes it easier for tax etc.

The end goal would be to continue my IT company by myself and hire a had mechanic to run the day to day running of the car restoration company.

My question is: until the car restoration business is up and running could my IT business fund/loan the stat up costs until it is self sufficient? If so would I be paying any or extra tax on the loans between the companies?

Any advice wold be much appreciated

Replies (2)

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By cheekychappy
25th Nov 2015 20:10

Your accountant should be the source of advice.

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By Bungo
26th Nov 2015 05:13

Of course the first company can lend funds if it so pleases. You would not be subject to any extra tax but there would be tax implications for the limited companies on the arising loan interest paid and received. I am not clear why you think extra directors might change the tax position of anything.

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