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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 6318
Experience:  FCCA FCMA CGMA ACIS
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Just looking for confirmationm of something. Assistant: Have

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Hi there. Just looking for confirmationm of something.
Assistant: Have you talked to a tax professional about this?
Customer: I intend to put my own capital into my property rental company, then the company will buy the properties. The money would be recorded as a Directors Loan. My question is this - if I take out money and record it as partial repayment of the Directors Loan (instead of taking salary, drawings or dividends), is that completely tax-free to me? I realise the company will pay Corporation Tax on the net revenue of the business, but I want to clarify that I will have no income tax liability on the money I take out to reduce the Directors Loan.
Assistant: Which tax year is this for?
Customer: Any tax year. I'm in the process of setting up the company now.
Assistant: Anything else you want the Accountant to know before I connect you?
Customer: No I don't think so.

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

Repayment of a loan by a director would be outside the scope of UK taxation unless interest was involved and then only that would be subject to tax.

Simple; as the meerkat in the TV advert would say!

I do hope that I have been able to set your mind at rest on this matter.

bigduckontax and 2 other Tax Specialists are ready to help you

Thank you for your excellent support.