Im looking at capitalising a business for my other half. Were not married, yet, but living together.
I'm considering using some of my warchest as a loan to her and have discussed with my old accountant (who will be her new accountant). Her suggestion was for me to take a directors loan personally, and pass it to my o/h. She can pay me the 4% interest and i dont get a tax charge.
Thats nice, but I came up with another idea... can i make her a director, not shareholder of my company, and get her to take the directors loan herself? As in its not then on my directors loan account, so should the worst happen and we split up, i can write the loan off without it affecting my tax affairs.
One other option can I lend her the money from the company even if shes not a director?. in the understanding its done to her business? unfortunately though i fear that as she will be sole trader and not a ltd, i would need a consumer credit license to do this. probably.
Either way i know ill want a formal loan agreement, although i trust her now, i may need to show in future that it was her who had the money from the company and not me. (im divorced and nolonger romatically deluded when it comes to money).
ps i already know The rules about directors loans, just trying to see if anyone has lent money to a non spouse partner before and the way you did it.
Ii makes good business sense to me as ill get a 4% return (before CT) which is better then i get leaving it in my reserve account.
I'm considering using some of my warchest as a loan to her and have discussed with my old accountant (who will be her new accountant). Her suggestion was for me to take a directors loan personally, and pass it to my o/h. She can pay me the 4% interest and i dont get a tax charge.
Thats nice, but I came up with another idea... can i make her a director, not shareholder of my company, and get her to take the directors loan herself? As in its not then on my directors loan account, so should the worst happen and we split up, i can write the loan off without it affecting my tax affairs.
One other option can I lend her the money from the company even if shes not a director?. in the understanding its done to her business? unfortunately though i fear that as she will be sole trader and not a ltd, i would need a consumer credit license to do this. probably.
Either way i know ill want a formal loan agreement, although i trust her now, i may need to show in future that it was her who had the money from the company and not me. (im divorced and nolonger romatically deluded when it comes to money).
ps i already know The rules about directors loans, just trying to see if anyone has lent money to a non spouse partner before and the way you did it.
Ii makes good business sense to me as ill get a 4% return (before CT) which is better then i get leaving it in my reserve account.
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