Q: Maximum Interest Free Loan for a Director ?


D

Dale Robinson

Hi,

Does anyone know the maximum interest free loan a director can take from his
company ?

I did a google search but got loads of results, all offering me "low
interest loans" (suprise suprise!)... :)

Many thanks,

Dale Robinson
 
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D

Doug Ramage

Dale Robinson said:
Hi,

Does anyone know the maximum interest free loan a director can take from his
company ?

I did a google search but got loads of results, all offering me "low
interest loans" (suprise suprise!)... :)

Many thanks,

Dale Robinson
What is the purpose of the loan? Will it be repaid before the end of the
accounting period, or within 9 months thereafter?
 
D

Dale Robinson

Hi Doug,

Its a bridging loan for me, and would only be short term and repaid before
the accouting period.

Cheers,

Dale.
 
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D

Doug Ramage

In theory, the limit is £5000 - imposed by the Companies Act.

Loans to participators (includes a director) do come within the company tax
regime if repaid by the end of the AP.

But there could be BIK implications for the director.
--
Doug Ramage

Dale Robinson said:
Hi Doug,

Its a bridging loan for me, and would only be short term and repaid before
the accouting period.

Cheers,

Dale.
 

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