I'm running this by my accountant but he's not available jusqu'a tomorrow.
Maybe some of you have an idea on this proposal.
I have some retained profits in my Ltd, which of course are earning a tremendous rate of interest at 0.05%. I see an opportunity to earn say 4.5% by lending it to my wife, who wants to buy an investment property.
So, rather than her go out to market and get a rip-off BTL mortgage from the banking system, she can take the loan from my Ltd and pay back installments at 4.5% interest every month.
The interest will of course be subject to corporation tax, but the idea means extra profit for the Ltd so appears to be good business sense.
Is this a viable plan?
Maybe some of you have an idea on this proposal.
I have some retained profits in my Ltd, which of course are earning a tremendous rate of interest at 0.05%. I see an opportunity to earn say 4.5% by lending it to my wife, who wants to buy an investment property.
So, rather than her go out to market and get a rip-off BTL mortgage from the banking system, she can take the loan from my Ltd and pay back installments at 4.5% interest every month.
The interest will of course be subject to corporation tax, but the idea means extra profit for the Ltd so appears to be good business sense.
Is this a viable plan?
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