UK Personal Loans

[newtoaccounts]

Good morning,

I'm hoping someone will be able to provide some advice/help.

If I take a personal loan to fund my new start up company and pass that into a Director's Loan account can I charge the same amount of interest to the company as I am personally incurring without any tax implications personally or for the business?

Or do you have any other suggestions?

Thanks for your help.

Kind regards,
Craig

 

[Truemanbrown]

Good morning, I'm hoping someone will be able to provide some advice/help. If I take a personal loan to fund my new start up company and pass that into a Director's Loan account can I charge the same amount of interest to the company as I am personally incurring without any tax implications personally or for the business? Or do you have any other suggestions? Thanks for your help. Kind regards, Craig

Firstly, you may be able to claim relief for interest paid or for alternative finance payments where the loan or alternative finance arrangement is used to buy ordinary shares in, or lend money to, a close company in which you own more than 5% of the ordinary share capital on your own or with associates, or you own any part of the share capital and work for the greater part of your time in the management and conduct of the company’s business, or that of an associated company.

Therefore, you if you lending money to a close company you should get tax relief for the loan at your marginal rate of tax.

On the other side, there is nothing stopping the company paying interest on the loan made by you to the company.