Purchasing Share Capital with Directors loan

Can you raise share capital and then use the credit balance on Directors Loan account to fund it

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My son has introduced money into his new business and it is currently on Directors Loan Account.

Can he raise Share Capital and do a journal to move the Directors Loan Credit balance to the Share Capital?

Will there be any tax consequences to this



Replies (4)

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By Truthsayer
30th Jul 2023 15:54

He could. Whether it would be a good idea is a different question, which could be answered by his accountant.

Thanks (3)
By Nonny
30th Jul 2023 16:18

Thank you for time and reply to this query

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By Leywood
30th Jul 2023 16:22

Your son, not you, should ask his tax advisor

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By lionofludesch
31st Jul 2023 09:56

What does he want to do that for ?

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