Moving Loan from partnership

Moving Loan from partnership

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A client has a bank loan that the bank are not overly keen with moving over to a limited company. What are our options? Is keeping the partnership open along with the limited company with only the monthly interest payments going through it a viable option?

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By David Ex
02nd Aug 2022 13:20

Media91 wrote:

A client has a bank loan that the bank are not overly keen with moving over to a limited company. What are our options? Is keeping the partnership open along with the limited company with only the monthly interest payments going through it a viable option?

Guessing the bank just want to be as sure as possible their loan is as secure as possible. Would the terms of the loan allow the “keeping the partnership open” option? Have the partners offered to personally guarantee the loan if the bank allowed it to be novated to a company?

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Danny Kent
By Viciuno
02nd Aug 2022 14:01

Can they claim relief as qualifying loan interest on their SATRs? The loan in then just reflected through the DLAs.

https://www.gov.uk/government/publications/interest-and-alternative-fina...

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Replying to Viciuno:
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By Tax Dragon
02nd Aug 2022 20:17

No - s385(3).

But I agree your point that the partnership cannot exist (at least, in Wales or England) after its business has ceased. 'Keeping it open' is not an expression that means anything to me.

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