Can my U.K. limited company lend money to a director or another person?

Can a Ltd company lend money to a director?

A director can loan money to or receive a loan from a limited company but it is important that the tax implications are understood to avoid any surprise tax bills.

Can my company lend money to another company that I am a director of?

You can lend money to another company that you are a director of providing that your company holds sufficient amounts of cash to meet any liabilities that fall due whilst the loan is outstanding. Details of the loan must be disclosed by a note to your accounts as a ‘Related Party Transaction’.

Can a limited company lend money to an individual?

Can a Limited Company lend money to an individual. A limited company can lend money to an individual, but there are a few things to consider before doing so. First, the interest rate charged on the loan should be at or below the market rate to avoid violating tax laws.

Can companies loan directors money?

It is generally not permitted for a director to loan money from the company except in certain circumstances. It is possible for shareholders to loan money from the company. In general, directors of a company or of a related company (i.e. holding or subsidiary companies), are not allowed to loan money from the company.

Can I lend money from my company?

It is no problem to lend money to your company, however there are many disincentives to borrow money from your company. It is important that any balances between you and your company are documented in the same way as any other company transactions.

Can a company give interest free loan to director?

Yes, Company can take interest free loan from Directors. But as per the provisions of the Section 186(7) of Companies Act, 2013, the Company which is not exempted from the provisions of section 186 as per section 186(11), can not give interest free loan to subsidiary company.

Can a Ltd company lend money to another limited company?

Are loans between limited companies allowed? The good news is, that loans between limited companies are allowed. However, the loan is only allowed if the company making the loan has sufficient funds to cover any liabilities that may arise during the period that the money is outstanding.