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New company, not trading for a while
by jacksjpt at 14:42 09/01/14 (Ask-Legal-Accounting)
I'm planning a new venture with my wife. I intend to setup a new company, 50/50 shareholding, and we'll both loan the company equal amounts of seed money (say 50,000 each). We haven't entirely decided on the venture, but I'd like to get the corporate structure started.
It's possible that while we do research, the company won't do any trading at all for an extended period, though the loans will sit in an interest bearing account so that the money isn't idle - so the company will be initially nontrading, but will have a small profit from interest. Is there any problem with this setup?

I'm not looking for tax optimisation advice in setting this up, I'm just wondering if there's some pitfall like the revenue considering this to be not a real company or some such, and then assessing the interest as our income instead of the company's. I can't see anything in the HMRC manuals that suggest that, but after so many years of finding subtleties in our mind warping tax system I thought I'd ask.

--
jacksjpt

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New company, not trading for a... jacksjpt - 9/01
    Re: New company, not trading f... Andrew Plaskow - 9/01
    Re: New company, not trading f... BarryRoback - 9/01
 
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