Accountant Forums

Thread Tools

investing money into another company - is it an expense?

Posts: n/a
      08-10-2008, 07:07 PM
Hi All,

I have a limited company and I'm thinking about setting up another one
which would be doing something completely different. The new company
requires some initial capital which I would like to transfer from my
existing company. What's the best approach from the tax point of view?

a) do I need to take a dividend and pay tax on it, not being able to
claim that amount of money as an expense and then put my personal
money to another company as a director's loan?


b) is there a better option? Ideally I would like to put money from
company A to company B and being able to claim that amount of money as
expense for company A

Please note, I'm 100% shareholder in company A, but I won't be in
company B

Thanks a lot for advice,
Reply With Quote

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are On
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Limited company shares owned by another Limited company Charlie Brooker UK Accountancy 3 10-17-2007 08:48 PM
Value Investing vs Growth Investing UK Finance 4 06-07-2007 12:54 PM
How do I create a new (empty) company file based on accounts, vendors etc. from another company file? Dan E Quickbooks 2 01-12-2006 08:11 PM
Solution to error: "Another user is currently using this company file from another computer." Quickbooks 3 10-31-2005 01:24 AM
Investing Accounts Total Incorrect on the Investing home page of M05 William L. Oppenheim, M.D. Microsoft Money 2 10-12-2004 11:57 PM

All times are GMT. The time now is 07:56 AM.
Posts in this forum do not constitute the advice of or its members. Financial advice should always be taken from qualified advisors before committing to a financial decision.