Dear kind fellows,
I have remortgaged my residential property to raise funds to purchase a commercial property with an existing lease, through my limited company.
I will be giving a loan of around £100k to my limited company to buy this commercial property. As I will be loaning my own company, I won't be charging any interest.
My question is that will I be taxed (corporation tax) on the rental income BEFORE or AFTER making my loan payments to myself? Are the loan payments allowable expense under limited company?
Secondly, will I have to pay any personal tax on the loan payments I receive from my company? Please note, that the loan payments I receive are likely to be higher than the mortgage payments on my personal residential property.
Thank you kindly