Hi,
Does anyone know the maximum interest free loan a director can take from his company ?
I did a google search but got loads of results, all offering me "low interest loans" (suprise suprise!)... :)
Many thanks,
Dale Robinson
Q: Maximum Interest Free Loan for a Director ?
Feb 16, 2004
3 Replies
What is the purpose of the loan? Will it be repaid before the end of the accounting period, or within 9 months thereafter?
Hi Doug,
Its a bridging loan for me, and would only be short term and repaid before the accouting period.
Cheers,
Dale.
In theory, the limit is 5000 - imposed by the Companies Act.
Loans to participators (includes a director) do come within the company tax regime if repaid by the end of the AP.
But there could be BIK implications for the director.
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