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A director wishes to borrow £50,000 from one of his limited companies for his personal expenditure. To delay his repayment of the loan, he plans to repay this with a loan from another company with an overlapping year-end
We act on behalf of a client who is the sole director and shareholder of two limited companies. One (A Ltd) has a financial year end of 30 September and the year end of the other (B Ltd) is 31 December.
In September 2013 our client will need to take £50 000 cash out of the companies on a temporary basis to complete the funding of a holiday home that he is buying in his own name. He does not wish to take salary or a dividend with the consequent higher-rate income tax issues.
Our thinking is that in September he could take the money out of B Ltd which has the 31 December year end. Then say sometime in December 2013 he could borrow the same amount out of A Ltd to repay the B Ltd loan and thereby avoid an overdrawn director’s...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
