Avoiding Directors Loan exposure via intermediate not related Ltd above 10K threshold

[Yuri F]

Would it be safe from taxation perspective if
Ltd "A" (where beneficiary "D" is sole director/shareholder/employee)
issues loan to another non-related Ltd "B"
and legal entity "B" lends to "D" ?
(for minimum formal premium/interest at each stage: 4% "A">"B" and then extra +0.5% "B">"D").

There's full transparency for "A" on financial situation with "B",
which is solid/solvent short and long-term with plenty of reserves
so we can consider middlemen as risk-free stage.

Company "B" belongs to old school friend / neighbor who's contractor as well.

[Old Greg]

Would it be safe from taxation perspective if
Ltd "A" (where beneficiary "D" is sole director/shareholder/employee)
issues loan to another non-related Ltd "B"
and legal entity "B" lends to "D" ?
(for minimum formal premium/interest at each stage: 4% "A">"B" and then extra +0.5% "B">"D").

There's full transparency for "A" on financial situation with "B",
which is solid/solvent short and long-term with plenty of reserves
so we can consider middlemen as risk-free stage.

Company "B" belongs to old school friend / neighbor who's contractor as well.

Give it a f***ing break, will you?

Mods, do the needful please and move to General.

[Lance]

Would it be safe from taxation perspective if
Ltd "A" (where beneficiary "D" is sole director/shareholder/employee)
issues loan to another non-related Ltd "B"
and legal entity "B" lends to "D" ?
(for minimum formal premium/interest at each stage: 4% "A">"B" and then extra +0.5% "B">"D").

There's full transparency for "A" on financial situation with "B",
which is solid/solvent short and long-term with plenty of reserves
so we can consider middlemen as risk-free stage.

Company "B" belongs to old school friend / neighbor who's contractor as well.

Google GAAR.......
Also.... both company A, and company B, are now entering different trades so you are getting into a new world of pain.

Why can't you keep this dumb-arsed scheme in the same thread as the other one on dodgy director loans???

[Old Greg]

Google GAAR.......
Also.... both company A, and company B, are now entering different trades so you are getting into a new world of pain.

Why can't you keep this dumb-arsed scheme in the same thread as the other one on dodgy director loans???

Or merge with Darren's and PC's threads to create a scheme to disguise income as parking charges routed via Director's Loans to preserve eligibility for JSA.

[Yuri F]

Google GAAR.......

thanks, googled it, will keep me busy for a while.

cool down guys, not everyone is pro like you,
I do understand you've been through all of it already and it might seem boring and repetitive to you
but guess what - there are some amateurs like me who don't know it, there's always some learning curve involved.

[northernladuk]

*cough*PSCONT*cough*

[northernladuk]

thanks, googled it, will keep me busy for a while.

cool down guys, not everyone is pro like you,
I do understand you've been through all of it already and it might seem boring and repetitive to you
but guess what - there are some amateurs like me who don't know it, there's always some learning curve involved.

If you have make up excessively complex scenarios to gain a benefit from your money then it's usually not going to work.

Also if you can't find the information out there on the web then again it's not going to work. Nearly everything we do is well documented if it is viable. If you can't find any articles as why you can't use three companies to loan money to your mate there is probably a very good reason why.

Add some common sense in to the mix as well.

If you aren't getting this then go back and read all your posts on your PSCONT account to see how well these type of endless questions go down.

[Lance]

If you have make up excessively complex scenarios to gain a benefit from your money then it's going to fall foul of GAAR as that was precisely why GAAR was introduced for

FTFY

[Old Greg]

If you have make up excessively complex scenarios to gain a benefit from your money then it's usually not going to work.

I keep waiting for Bob to post an article.

https://www.linkedin.com/in/bobshawadiwadi/