You could call the £50k capital as well. Although that has different tax distinctions when taking it back out.
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Me loaning money to LTD CO
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Originally posted by Lance View PostYou could call the £50k capital as well. Although that has different tax distinctions when taking it back out.
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Originally posted by richy View PostHi Lance, could you give me a bit more info please.
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Originally posted by richy View PostHi Lance, could you give me a bit more info please.
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You put £50k cash into the company as capital rather than a loan. That's an investment not a loan. Your shareholding becomes greater and the company doesn't have any debts.
Whether you do this, rather than a loan, is dependant on your exit strategy. If you intend to close the company with a lot of cash in the bank, to get entrepreneur's relief, then that £50k will be offset against the CGT you'd pay. If that's not your intention then there's little to be gained by this method over a loan.
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Originally posted by northernladuk View PostAre you really sure about that request???
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