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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15946
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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My wife and I have put money into our Ltd company over the

Resolved Question:

My wife and I have put money into our Ltd company over the last 13 years. We currently operate a shop as picture framing and arts and crafts. Can we diversify into something else to increase the profits and then remove the loan free of tax a little at a time
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. When you lend money to your own company, it is not taxable income if and when when you withdraw it. It it was taxable, nobody would lend money to their own company. So long as you have recorded the cash injections as loans, then you should have no problems. As far as diversifying within the company, the Articles of Association should allow it to conduct almost any type of business. I hope this helps but let me know if you have any further questions.
Customer: replied 1 year ago.
Thank you Tony - so in theory we could start buying and selling cars through the company? or something similar.
Expert:  TonyTax replied 1 year ago.
Yes, you could. Check your Memoradum and Articles of Association. The accountant may have those.
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