Director has made a loan to the ltd company two years ago of approx £250,000. This loan is for the fixed assets purchased and working capital. As per the loan agreement, the interest is charged at 2% above Bank of England interest rates. So far the interest is accrued in the company's accounts i.e. no cash payment has been made to the director. The company has not made a profit so far and therefore has not been able to pay. Is the interest charge tax-deductible even if no cash payment has been made.
23rd Aug 2021
Director loan to the ltd company
Is loan interest to a connected party tax deductible
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