I have recently formed a group of companies comprising of an Irish Ltd parent company and a UK ltd subsidiary (100% owned by Irish company). As the the UK company has been trading for 2 years we wanted to use retained earnings in the UK company to finance the Irish company to get it up and running.
1) Are there any restrictions to a cross border intra-group loan in this situation?
2) What considerations must be given to the terms of the loan, if any?
Many thanks for your replies in advance.