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bigduckontax, Accountant
Category: Tax
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Experience:  FCCA FCMA CGMA ACIS
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Im the founder of a manufacturing business of which my

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Hello.. Im the founder of a manufacturing business of which my eldest daughter is 100% shareholder. I intend to set up a new completely separate manufacturing business, that both my daughters will have 50% each in.
I need to tax efficiently take £5m funds from the existing business to set up the new business, and am looking for advise on how to best do this.
JA: Have you talked to a tax professional about this?
Customer: no
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: I believe ive given you the pertinent information
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Hello,

I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.

I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!
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Will thecompany take shares in the new company?
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 11077
Experience: FCCA FCMA CGMA ACIS
bigduckontax and other Tax Specialists are ready to help you
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Customer: replied 3 months ago.
Thank you so much for the effort your putting in, I will be happy to wait to get the right advice

Sorry, I am back.   Can you please answer my query then we can move forward.

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Customer: replied 3 months ago.
Hi- I hadn't intended that the existing company has any shares in the new company, but if this would be an efficient tax route then yes
Then the existing company would have to lend money to your daughters.  Providing they are not directors of the existing company this would present no problem.
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Customer: replied 3 months ago.
But I believe that a loan would need to be repaid before the close of the financial year, otherwise Interest would be applicable
Customer: replied 3 months ago.
my eldest daughters, the 100% share holder of the existing co is also the only director
Customer: replied 3 months ago.
Sorry ...* daughter

Then the loan would have to be repaid within 9 months of the end of the company's accounting period to avoid horrendous taxation problems.

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Customer: replied 3 months ago.
I came to you looking for professional advise on tax efficient routes ....your answer "horrendous taxation problems" is of no help!

I was merely warning you of the possible taxation difficulties which could be faced by a director in receipt of loand fom their company.

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