Adding a new shareholder (another Ltd co).

[oilboil]

Many of us are interested in investing in property and utilising retained profit within our contracting companies. Rather than an inter-company loan, one could create a new share class and have the SPV own shares in the contracting company. The contracting company can then issue dividends to the SPV.

But surely in this case the inter-company loan is actually a better more tax efficient way of processing the transaction anyway - Also in your method you essentially create an "implied" group of companies and all the headaches thereof

Where as a company loaning another money is about a common a transaction as I can think of

[RockyBalboa]

Many of us are interested in investing in property and utilising retained profit within our contracting companies. Rather than an inter-company loan, one could create a new share class and have the SPV own shares in the contracting company. The contracting company can then issue dividends to the SPV.

[northernladuk]

No but why would you do this is a more pertinent question. Often on these boards we get the question can you? When the better questions is should you? But you've give no information at all about that.

https://www.rapidformations.co.uk/bl...e-shareholder/

[RockyBalboa]

I know there are a few threads on adding a spouse as a shareholder to one's company but are the tax implications different if adding another Ltd company as a shareholder? Has anyone done this?