investing money into another company - is it an expense?

Discussion in 'UK Finance' started by Richard, Aug 10, 2008.

  1. Richard

    Richard Guest

    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?

    OR

    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,
    Richard
     
    Richard, Aug 10, 2008
    #1
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