I wonder if anyone can provide some business advice?
Background
I am the owner of 2 Limited Liability Companies.
Company_1 is engaged in freelance IT work (outside of IR35 for now)
Company_2 rents out holiday homes
Issue
I would like Company_1 to invest some of its capital in Company_2 to lower my tax position.
The routes open to me appear to be:
Option A) Company_1 loans Company_2 money
Option B) Company_1 buys a share of Company_2
Option C) ???
I would like to go for Option A). My understanding is that the terms of the loan and the interest rate (if any) are solely decided between the 2 companies (although presumably should appear reasonable to HMRC).
Has anyone else done this or have any advice on doing so?
Many thanks in advance.
Background
I am the owner of 2 Limited Liability Companies.
Company_1 is engaged in freelance IT work (outside of IR35 for now)
Company_2 rents out holiday homes
Issue
I would like Company_1 to invest some of its capital in Company_2 to lower my tax position.
The routes open to me appear to be:
Option A) Company_1 loans Company_2 money
Option B) Company_1 buys a share of Company_2
Option C) ???
I would like to go for Option A). My understanding is that the terms of the loan and the interest rate (if any) are solely decided between the 2 companies (although presumably should appear reasonable to HMRC).
Has anyone else done this or have any advice on doing so?
Many thanks in advance.
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