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Restarting a dormant company

I want to know implications of restarting a dormant company

I started a business a few years ago which didn't work out. It is dormant now (for the past 3 years) and has 15k of losses and a 15k director's loan sitting there (there are no assets left).

I now want to use that company to start a new business which is unrelated to the old one.

Few questions questions:

1. Given the new business is diffirent to old one, can I still use the c/f losses?

2. If I restart the business and put more money in via director's loan, will I be able to take all teh loans (new and old) out without payign any tax?

3. Could this reopening dormant company cause issues in either openign abank accoutn and/or obtainign a business loan at some point in the future?

4. Could it impact ability to raise outside funding via EIS/SEIS since the company will not be @new [email protected]?

Thanks

 

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12th Dec 2018 20:25

1. No
2. Yes. Loan repayments are not taxable. Imagine what position banks would be in if they were.
3. Don’t see why it should make any difference.
4. Don’t know enough about those rules.

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By drdes
12th Dec 2018 20:54

Thanks. Much appreciated. Question 4 is a bit obscure to be fair. Will have to check with the EIS department.

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13th Dec 2018 08:53

1. Almost certainly no.

2. Yes

3. Maybe - it's up to the bank.

4. No idea, I'm afraid.

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13th Dec 2018 09:57

This from HMRC web site

Limits on the age of your company
You can receive investment under EIS as long as it’s within 7 years of your company’s first commercial sale. If you have any subsidiaries (including former subsidiaries) or businesses you’ve acquired, the date of your first commercial sale is the earliest of the group.

If you received investment in this period (under EIS, SEIS, SITR, VCT or state aid approved under the risk finance guidelines), you can use EIS to raise money for the same activity as long as you showed you were planning to do so in your original business plan.

If you did not receive investment within the first 7 years, or now want to raise money for a different activity from a previous investment, you’ll have to show that the money:

is required to enter a completely new product market or a new geographic market
you’re seeking is at least 50% of your company’s average annual turnover for the last 5 years

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