Originally posted by Craig@Clarity
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Intercompany Loan SPV
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Originally posted by Craig@Clarity View PostLet me correct myself. They used to be called Franked Investments but since the change in 2016 and the abolition of tax credits, it's simply exempt from CT if the dividends are from UK company to UK company. You'd just adjust for the dividend income on the tax computation. Still no CT consequence though
If your accountant is advising you dividends are taxable when received by a company, I would recommend you get another accountant - that's basic stuff.Comment
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Originally posted by Craig@Clarity View PostLet me correct myself. They used to be called Franked Investments but since the change in 2016 and the abolition of tax credits, it's simply exempt from CT if the dividends are from UK company to UK company. You'd just adjust for the dividend income on the tax computation. Still no CT consequence though
In reality, the accountant would adjust for this in the tax computation separately regardless is what FreeAgent is showing.Comment
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Originally posted by LoanCharged View PostThanks for the clarification and you are indeed correct. I may have misconstrued this due to my accountant setting this up a certain way in FreeAgent. It appears FreeAgent can not handle this scenario and shows the dividend is liable to CT.
In reality, the accountant would adjust for this in the tax computation separately regardless is what FreeAgent is showing.Comment
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Originally posted by Craig@Clarity View PostThat would be the best way (for your accountant to adjust for it separately). However, if you're dead set on having Freeagent give you a more accurate estimate, the work around that I can see would be to create an admin expense account and untick the box that says allowable for tax. Yes, it's an expense account rather than an income/sales account and you'll end up with a credit balance on this newly created account, but it could work out your CT more accurately. I've not tried or tested it but if my logic is right, it's a rough and dirty work around.Comment
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interest free loan
Originally posted by craigy1874 View PostThis works well. But there is no need to charge interest and it is tax neutral so I wouldn't bother.
I see many accountancy related websites suggesting it does, e.g.
FRS 102: Loans between related parties | AccountingWEB
What if the loan goes beyond a tax year?Comment
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Originally posted by ChimpMaster View PostYou don't need to charge interest. You don't need to make (regular) repayments. You can repay whenever it suits.Comment
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Originally posted by ChimpMaster View PostI'm not experienced / knowledgeable on changing the SIC of your IT Co to another SIC , and then starting up another company for your IT business. It doesn't sit right with me but at the same time I can't find anything wrong with it. Will be interesting to see what the others on CUK think about it.
No bank is going to provide a mortgage for a company with a changed SIC, the reason is all that pre-BTL history is deemed a risk.
Banks will lend to already existing BTL Ltds or new SPV Ltds.Comment
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