Director/Shareholder is a resident of UAE and has been for 3 years. Has owned a UK limited company for 7 years, which rents out residential property.
There is a large directors loan owing from the company to him. If he chooses to charge interest on this loan at a commercial rate, will the interest paid to him be free of UK income tax and allowable to reduce the corporation tax liability.
If he also decides to pay himself a salary, will this also be free of UK income tax and NI but also allowable to reduce the corporation tax.
If he chooses to pay a dividend then presumably he will pay income tax if he returns to the UK within 5 years?
Thank you for any guidance