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Gifted deposit from company
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Vp0007
Posts: 19 Forumite

Hello everyone,
My parents kindly gifted me some money for a deposit (£15,000). This money comes from their limited company and the only sole owners of this business are my mum and my dad.
My parents kindly gifted me some money for a deposit (£15,000). This money comes from their limited company and the only sole owners of this business are my mum and my dad.
What’s the best way for them to remove this money from the business and transfer it to their personal bank account? Obviously profits are available in the company, so if they remove this money from the business account as dividends, would this be ok for solicitors?
Will be asking the business accountant too, but I want to make sure everything is done correctly so that it doesn’t seem as they avoiding paying taxes!
Will be asking the business accountant too, but I want to make sure everything is done correctly so that it doesn’t seem as they avoiding paying taxes!
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Comments
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If they want to take it as dividends or a directors loan or pay themselves a bonus is up to them, all are possible, some will attract more tax than others but that'll be for them to pay.0
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It's going to need a proper audit trail.0
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If they already have saving to that amount it would probably be better to use those and top them back up from the company over time.0
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Vp0007 said:What’s the best way for them to remove this money from the business and transfer it to their personal bank account?
Ultimately the money will just be a personal gift from them to you. Not a large enough amount to warrant investigation in isolation.1 -
Vp0007 said:Hello everyone,
My parents kindly gifted me some money for a deposit (£15,000). This money comes from their limited company and the only sole owners of this business are my mum and my dad.What’s the best way for them to remove this money from the business and transfer it to their personal bank account? Obviously profits are available in the company, so if they remove this money from the business account as dividends, would this be ok for solicitors?
Will be asking the business accountant too, but I want to make sure everything is done correctly so that it doesn’t seem as they avoiding paying taxes!
If everything is reported correctly, the correct tax will be taken somewhere along the line, assuming your accountant is doing their job properly.
Dividends would be the obvious solution and it's generally how directors receive most of their income.1 -
The obvious one is to make you a shareholder in their company and pay you a dividend.
Obviously depends on your tax rate vs theirs though.0 -
Veteransaver said:The obvious one is to make you a shareholder in their company and pay you a dividend.
Obviously depends on your tax rate vs theirs though.
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If your parents wish to remove profits from a limited company, they should, as suggested above ask their Accountant's advice. If taken as a dividend the voucher will give them an audit trail should your solicitor wish to see the source of the funds arriving in their personal bank account.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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