Member Since: 27th Apr 2012
29th Oct 2019
Have spoken to another tax adviser I was told the following:
a) that there will be no sec 455 arising as this is not loan made to a participator (namely to the director himself) as this was a loan between 2 companies loaning each other at commercial rates
b) Thus based on the first reply above, then a beneficial loan does not arise
c) Taking dividends from Company B say in later years does not pose any problem for the shareholders in this case
d) It is always better to draw up a loan agreement. Finally no withholding tax arises on the interest paid by company B to company A as this is between 2 companies instead of interest repayments to an individual.
Does anyone out there agrees with the above? Are there anything else I should consider tax wise?
14th Mar 2019
Thank you for you response. Please note that he was using this Caravan for work as well. He did purchase the Caravan purposely for his work when he secured the contract. He lives far away & was just using this during his working week and then returns home mostly at weekends.
13th Mar 2017
This relates to the tax year of 2017/18.
26th Feb 2013
Closing a Company
In reply to question, the company is a shell. All assets have been transferred out to the client in his self employed capacity.