I have a client who is a contractor and earns a substantial amount of money in his regular job, so the the income received from his own consultancy via his limited company has been untouched for several years. There sits around 200k in his company bank.
Now he doesn't need to access the company money and in a normal situation, he would draw on it after he retires.
However, recently he has thought about going into property development, starting with converting hsi own property from a 1 bed to a 4bed so he can let it.
This will cost around £110k. He wants to set up a separate property development company, and loan from his other company to this new company. The new company will repay the loan over a number of years.
What are the possible issues? Could there be s455 loan issue? BIK (he will charge interest on the loan)? Anything else?