Me loaning money to LTD CO

[Lance]

You could call the £50k capital as well. Although that has different tax distinctions when taking it back out.

[richy]

You could call the £50k capital as well. Although that has different tax distinctions when taking it back out.

Hi Lance, could you give me a bit more info please.

Thanks

[northernladuk]

Hi Lance, could you give me a bit more info please.

Thanks

Are you really sure about that request???

[Lance]

Hi Lance, could you give me a bit more info please.

Thanks

holy thread resurrection batman.......

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.

IANAA

[Lance]

Are you really sure about that request???

That's lacking in useful content even for you. I'm disappointed.

3/10 Must try harder.

[Scruff]

What did NLUK's accountant say? 😎