Purchasing Share Capital with Directors loan

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

Didn't find your answer?

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)

Please login or register to join the discussion.

avatar
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)
avatar
By Nonny
30th Jul 2023 16:18

Thank you for time and reply to this query

Thanks (0)
avatar
By Leywood
30th Jul 2023 16:22

Your son, not you, should ask his tax advisor

Thanks (1)
RLI
By lionofludesch
31st Jul 2023 09:56

What does he want to do that for ?

Thanks (0)