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

 

 

Comments
There are 8 comments. Login or register to view them.

Consumer credit licence

petersaxton |
petersaxton's picture

Consumer credit licence

Jacq_Maud |

Various

JamesPrice |

Business Property Relief and Entrepeneurs Relief

Jacq_Maud |

Business Property Relief and Entrepreneurs Relief

Jacq_Maud |

Limited company?

petersaxton |
petersaxton's picture

Sorry I misinterptretated

Jacq_Maud |

I'm not very knowledgeable at all

petersaxton |
petersaxton's picture