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Hi All
I am considering buying a small company. The seller wants £X for the shares and £Y for the existing directors loan owing to him. Therefore X will be my cost of investment on the balance sheet. Y I imagine will be my
Own directors loan account owing to me. However I am under paying him the balance on his directors loan. How is this treated and what are the tax treatments? Any help would be appreciated.
Secondly- inter company loans and forgiving same . I have tried reading the rules however I am lost! Does HMRC have manuals/articles in the rules that would be in digestible English. Again any help would be great.
Thank you