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Canvey
Posts: 60 Forumite
in Cutting tax
My partner became a sole trader 5 years ago, taking out 2 bank loans to finance the business. When I retired 3 years ago, I used my lump sum to pay off the bank loans. Now that her business is in profit, is it possible for me to (on paper) take back some of the money that I used to pay off the loans, thus reducing her tax liability.
Any help would be much appreciated
TIA
Canvey
Any help would be much appreciated
TIA
Canvey
0
Comments
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Being repaid your loans would not decrease her tax liability as she would never have paid tax on them in the first place. It would just reduce her liabilities in her balance sheet.£705,000 raised by client groups in the past 18 mths :beer:0
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Thank you, Fengirl, that was exactly what I meant. Is it acceptable practice to do this?
Regards
Canvey0
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