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  • Mortgages & Finance

    Loan or gift to Ltd company?

    Hi All

    I own 1 BTL on my personal name and I plan to buy second one on the ltd company.

    In regards to the deposit, would you recommend gift the money to the company or transfer it as loan to company? 

    Which option is beneficial from tax point of view and which one from long term point considering buying more properties on the ltd company?

    Thanks for your recommendations.

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    It dosent matter how you give money to your company

    it’s a directors loan and it will  how as such on the company accounts 

    you company can then pay you back when it has the funds  to do so

    it’s tax free to you but your company may have to pay cop tax before you get it back

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.


    Hi Pawel,

    Your accountant would be best to advise, if a LTD Co is the best route for you.

    We find that most advise to maximise tax benefits it is loaned to the company.

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    _________________________________________________________________________


    The above post is not financial advice, its often me rambling - passing time on a coffee break.
    If you are looking for the Best BTL Mortgage? Call the Specialist Team at Bespoke Finance.


    _________________________________________________________________________


    On what basis would you be gifting it. It is very strange to gift to a company and usually would result in a taxable receipt. A loan is the way to go but you don't need a loan agreement as it is just a shareholder loan (or directors loan account balance if you are a director as well).

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    Chartered Accountant, Tax Advisor and Mortgage broker

    (and BTL portfolio owner)

    stuart@johnsonsca.com

    02039077022