Question on company Loan

metro1111

Hi All,

I have a questions please on a company loan.

I have two limited companies, and started the second company last year.

My old first limited company I will call "A1 Limited" and the second new company I will call           "B2 Limited" to help describe my question please.

Question 
"A1 limited" loaned " my new company "B2 Limited" £100,000 when it started to help it trade (I am the sole director of both companies).

When it comes to my tax year end for company "A1 Limited" will it have to pay corporation tax on the £100,000 loan it made to "B2 Limited" 

I am guessing no as its a loan and is not a profit, am i correct?

Thank you for all help received.

MeteredOut

In the most basic terms, A1 will have a Loans Receivable asset, and B2 will have a Loans Payable liability.

Is A1 charging interest on the loan? That could be taxable profit for A1.

Have you formally documenten the Loan in company minutes?

This is really something you should be getting a qualified accountant to answer.  Did they advise in advance of you setting up the loan?

metro1111

Your right but i am in a situation at the minute im close to the end of tax year and my accountant has gone away on holiday :-(

metro1111

Thank you very much for all your help, I spoke to my accountant who is a chartered accountant of over 30 years i have used him for nearly 20 years.

He still says after speaking to him again just now, you can still use the allowance from previous years even though i've not been part of a pension scheme.

I looked myself at the weekend and after speaking HL today everything was pointing to me not being allowed to do this.

Just forwarded him the below link 

gov uk / guidance / check-if-you-have-unused-annual-allowances-on-your-pension-savings

" When you cannot carry forward unused annual allowance

If you have unused money purchase annual allowance, you cannot carry this forward, but you can carry forward any unused alternative annual allowance.

You cannot carry forward unused allowances from any tax year where you were not a member of at least one UK registered pension scheme, or a qualifying overseas pension scheme. " 

I just don't want to pay the money over for a couple of years and then get hit with a tax bill on my self assessment.

Grumpy_chap

This thread is difficult to follow.

Initially the OP was referring to a loan from A1 to B2.

Then a comment about being the end of the tax year.   Was that a reference to the end of the accounts year?

Now referring to pension carry forward and what appears to be erroneous comment from the Accountant.

GrumpyDil

Yup, I think OP has two threads running, one about pension carry forward and this one.