UK Foreign company to Loan money to UK company

[84e5jzul]

A client has got money in a bank account in a company account in Pakistan where he is no longer residing. He wants to transfer that money to fund his UK investment company. He is considering Lending money to his own company in UK and using that money for investments. Considering this is a bit complicated as it involves borders. I wanted to know what would be the regulatory and Tax implications for the client in this?

 

[Business2122]

A client has got money in a bank account in a company account in Pakistan where he is no longer residing. He wants to transfer that money to fund his UK investment company. He is considering Lending money to his own company in UK and using that money for investments. Considering this is a bit complicated as it involves borders. I wanted to know what would be the regulatory and Tax implications for the client in this?

To completely defer the tax implications he’ll need to purchase a government instrument of some sort then warehouse that instrument as collateral in the states

 

[84e5jzul]

To completely defer the tax implications he’ll need to purchase a government instrument of some sort then warehouse that instrument as collateral in the states

Thanks for the helpful response. You mention about using instrument as collateral in "states", do you mean in US. If so then would it not increase the complexity further by involving a 3rd country? Would appreciate if you could elablorate a little more on the answer. Thankyou for your time and help

 

[Business2122]

Thanks for the helpful response. You mention about using instrument as collateral in "states", do you mean in US. If so then would it not increase the complexity further by involving a 3rd country? Would appreciate if you could elablorate a little more on the answer. Thankyou for your time and help

I meant to say your clients needs to purchase UK government instruments (GILTS or treasures), or government instruments of whichever country you’re deploying the capital to

To minimize your tax exposure one needs to transmute capital, in this case the simplest way to do that is fungible instruments, which for most people is government instruments