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
Replies (8)
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Could you tell us what professional advice you have received so far.
Have you managed to find a solicitor to carry out all the legal work for free? I'm sure there are loads of lawyers out there willing to give away their expertise for nothing. Accountants do it all the time.
Before
No
No
Those are the answers to the questions raised. However, there are other issues to consider and on this point I agree this time with Accountant A - paying for professional advice is likely to prove rewarding.
Please seek an accountant.
It's clear from your questions you have no idea what you are doing or talking about.
And non of us are gonna spend hours for free explaining it all to you. Can I rent your commercial property for free? I doubt it.
Hi guys.
Thank you for your replies. I am a bit puzzled by your replies. I was of the understanding that this forum is to get free advice from experts as part of a community spirit. If this is not the case then what’s the purpose of this group?
I can surely get expert advice and happy to pay for it but then what’s the benefit of such community groups
The obvious reply - do you consider yourself to be a member of the professional accountancy and tax advisers community?
I see so this group is for accounting professionals then that’s not me
Funny how the biggest fans of community spirit are the ones who contribute fuch all to "the community".
The loan repayments are not even expenses of the company, never mind expenses allowable for corporation tax. If your thinking is so lacking in clarity you should stop trying to work it out yourself.