What are the procedures and tax implications for providing a company loan/mortgage to an external body of a private ltd co?
My client is a small brick cutting company, who are proposing to provide a loan to an external party. The company has a turnover of around £120k per year and has a consistent bank balance in the region of around £300k. The loan/mortgage proposal is also in the region of £300k to be repaid over the long term at a fixed rate of interest of 4.79% for the first 5 years?
Firstly, other than the obvious of being able to pay creditors and suppliers when they are due, what are the procedures and tax implications to the company if this goes ahead?
Many Thanks, Jacqui
- flat rate scheme 819 28
- Unqualified accountants filing SATR, VAT returns etc for clients 573 18
- TAX CERTIFICATES- DO THEY NEED TAXPAYER'S NAME? 111 1
- Accountants reference for me?? 236 1
- CIS online 160 3
- Class IV NIC 167 3
- bookkeeping system 194 4
- Company van paid by director 109 1
- Are you going to Tick and Bash on 21 May? 1,566 46
- Deferred income - financial concern no recognised turnover CT600 253 3
- changes to small vat returns after death. 132 3
- Private company division 98 1
- Office 365 vs. Google apps 303 6
- Are any of you members of The Institute of Financial Accountants - Accountnats certificate 639 7
- Split year treatment ? 120 1
- How to reward a long standing employee 277 3
- PPR relief - deemed residence? 109 2
- New intermediaries reporting requirements 209 2
- Windows 7 to 8 should I go Excel or Office 365 250 3
- Special dividends & CGT 311 2