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  • Tax

    Funds from Trading LTD to SPV LTD - loan rate

    Is there any standard annual interest rate for lending money from Trading LTD to SPV LTD? I am looking to lend £40.000 from my LTD company to fund a BTL business.

    Thanks

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    The simple answer is no.  The only requirement is that any interest chrged cannot be excessive.  I usually recommend looking at what you could borrow rom a bank or angel investor and then use that as a guide as to the rate of interest.

    Regards

    Nigel

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    Nigel Reynolds FCCA CMgr FCMI

    Property Tax Specialist

    Reynolds and Co

    http://www.reynoldsandco.co.uk


    Hi Nigel,

    That helps - thanks for clarification. I will turn to my bank manager and enquire about that to get a ballpark figure as a reference.

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