Loan

best way to do it

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client wants to have his ltd company loan his mother money each month to cover her care fees, with the loan repaid on death as part of the estate

is this possible?

are there any potential issues for the client and or his mother in doing this?

 

Replies (4)

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Portia profile image
By Portia Nina Levin
06th May 2016 15:46

Yes.

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Replying to Portia Nina Levin:
RLI
By lionofludesch
07th May 2016 13:52

Quote:

Yes.

I agree.

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paddle steamer
By DJKL
06th May 2016 15:50

None whatsoever, it is a fantastic way to benefit from HMRC tax breaks.

For every £100 the company lends to the mother HMRC also pays her £32.50 plus interest.

(Think I got that right, yeah, sure, I know it changed from £25 in the £100 to £32.50, yes, certainly on top of my game here, I know tax operates when there is a loan from company to participator or someone like their dear mother)

As you are an accountant I can ignore my usual advice of urging you to seek the advice of an accountant, though you could give yourself the advice if you were mindful.

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By Duggimon
06th May 2016 16:49

You could even pretend to lend the mother more than you actually do and pocket the difference tax free, everyone's a winner!

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