Splitting a directors loan account
Here's one for you.....
Property investment company, owned by one family. Mum & Dad are majority shareholders and are looking to exit.
Mum & Dad have a large Director Loan Account (DLA) +£700k, and it is unlikely that this will be fully repaid. The balance arose because of Mum & Dad selling property to the company, whilst not receiving payment from the company. As far as we can tell, having just taken this client over, all properties were sold at arms' length, using 3rd party valuations etc.
All of which leaves our client with a large asset for IHT purposes, which is extremely unlikely to be repaid by the company. Could Mum & Dad gift part of their DLA to the other directors / their kids? Am I right in assuming this would be a P.E.T.? Are there any other issues I've missed?
We can assume that Mum & Dad will be happy to gift part/all of their DLA balance.
Thanks in advance!
- How to prove income for a mortgage if you have no SA302s 560 7
- If I repay my Directors loan, will I haveto pay tax on the profit ? 946 19
- Capital repayments 90 2
- Purchase of shares and goodwill 303 10
- Capital Allowances on Furnished Holiday Lets Business 243 5
- CT return error message 119 5
- Audit rules 261 7
- I know this has been done to death but IRIS / DIGITA / CCH??? 557 10
- VAT Payable on Expenses for Non-VAT Registered Ltd Co 254 1
- Data transfer from Sage Line 50 to VT Transaction+ 261 1
- Sales Commission to Employees / External Companies 45 1
- Payroll software with annual pay period? 286 2
- Inheritance Tax and Capital Gains Tax 80 1
- How do you value an internet based business 841 11
- Apologies for reposting this but first post was on Friday afternoon! 161 1
- business entertaining deductibility 281 2
- Flat Rate VAT 180 1
- SA302 420 8
- Suppliers for Online Card Payments? 434 8
- Can anybody help withe the RTI end of year process? 506 5
- Xtuple 530
- Qtac payroll for bureau 360
- Confused - Professional Association a Mutual trader, or not? 303
- Industrial & Provident Societies 300
- Why would HMRC offer to close an investigation by contract settlement 230
- CIS schemes 186
- Domain name sale and limited company 186
- Investment 164
- Director legal fees in loose connection to the company 161
- Italian friend wants to set up a UK company to reduce taxes 142