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bigduckontax
bigduckontax, Accountant
Category: Tax
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I am currently the sole director of 2 limited companies -

Resolved Question:

Hi, I am currently the sole director of 2 limited companies - and I am looking to transfer funds between the 2 companies in way of a loan. Is this possible? and if it is what is the most tax efficient way to do this? are there any regulations I need to beware of before I complete this action?
Submitted: 23 days ago.
Category: Tax
Expert:  bigduckontax replied 23 days ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

Yes, you can, happens every day. Such transfers have no effect on the Corporation Tax (CT) position in either company unless interest is charged on the loan.

I do hope that you have found my answer of assistance.

bigduckontax and other Tax Specialists are ready to help you
Customer: replied 23 days ago.
Hi Keith, you seem to only have answered 1 part of the question - what is the most tax efficient way of doing this?...I have heard that I must charge the receiving company interest ( 3% above base rate) for the HRMC to see this as a company to company loan...and not me stripping money out of my companies without paying taxes....and if I do this, the company paying the interest I can write this off as a deductible expense ?
Expert:  bigduckontax replied 23 days ago.

From long experience I think you will find it easier to ring me. I am n 01750 725420.

Expert:  bigduckontax replied 23 days ago.

Thank you for your support.