UK Retained profit to investments

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There must have been an article somewhere as I have had 2 enquires on this .... IT contractor has a LTD company with retained profit .... creates second LTD for investments .... loans IT to INVESTMENTS interest free .... after XX years pays the loans back ... gets his entrep releif ... closes the IT ... loans his IT money back to the INVESTMENT ... makes money and has fun ....... the loan feels like HMRC will kill them for something and and and seems too slick ; there must be issues ... where is the Business tax in the middle !
 
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Hi

The following is not too clear:
closes the IT ... loans his IT money back to the INVESTMENT.

There are no issues with loans as far as tax is concerned as long has he has paid tax on his genuine profits.
If I give you £10 and you give it back there is no loss or gain.

Accountant TAX VAT PAYE Consultants
 

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