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
- Community Faux Pas 300 15
- Transfer of a trade WITHOUT assets? 279 5
- check v enquiry v discovery 139 2
- Amend a 2010/11 return 273 4
- What's the Barmiest Reason A Client gave you for going? 2,303 23
- Owner director gym membership 221 6
- Private doctors - Ltd company vs partnership 176 6
- Is cloud accounting actually pretty pants? 1,835 34
- Bookkeeping Rate of Pay 2,507 36
- Tax Fines - HMRC 589 8
- Practical experience 684 13
- Has this payroll data been created retrospectively? 157 2
- Autumn statement predictions 823 9
- Travelling expenses 162 3
- Exemption from CGT 448 12
- J10 - stock transfer form 101 2
- Post AAT? 455 1
- Do I need to register for VAT 211 11
- Invoices raised after company dissolution 134 3
- VAT - Check on clients business 708 28