Loan to my brothers limited company

looking to loan my brothers Ltd company £15,000

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I am looking to loan my brother £15,000 - £20,000 for his limited company. I have read that loans to related party will come under the scope of s455 tax, but this is to his limited company. The loan is for the purpose of his business,loan will be for a period of 16 - 20 months. 

Also i have plenty of reserves in the business to make this loan, will i need to charge interest on the loan?

Replies (7)

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By lesley.barnes
05th May 2021 16:48

Is it a limited Co to limited company loan or a personal loan from your own money to his company?

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Replying to lesley.barnes:
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By ih11
05th May 2021 16:58

limited company to limited company

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Replying to ih11:
Routemaster image
By tom123
05th May 2021 19:01

Therefore the s455 charge is not in play, and you don't need to charge interest.

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Replying to tom123:
Psycho
By Wilson Philips
05th May 2021 20:37

Unlikely perhaps but s459 could be in point.

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By Paul Crowley
05th May 2021 22:06

Why can posters not ask a real question
I = my company
Complete bobbins

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Replying to Paul Crowley:
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By Tax Dragon
06th May 2021 07:13

Hopefully brother's company does not equal brother, else the answer would be different. (The brother's company is not a relative; the brother is.)

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Replying to Paul Crowley:
Psycho
By Wilson Philips
06th May 2021 08:08

I skipped over that excellent point. Based on the wording of the question s455 is an utter irrelevance.

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