Injecting Cash Into New Venture?

Injecting Cash Into New Venture?

Author
Discussion

MyNameIsMud

Original Poster:

50 posts

219 months

Monday 13th March 2006
quotequote all
I have my own money which I wish to inject into a company, is this possible without being taxed twice (because i've already paid tax on the money through work etc)?

srebbe64

13,021 posts

239 months

Monday 13th March 2006
quotequote all
What makes you think you'd pay tax by investing in a company?

You'd pay tax on any capital gain when you sell the equity, or indeed, taking a dividend / income.

Smartie

2,604 posts

275 months

Monday 13th March 2006
quotequote all
If you loan money to a company this will be shown on the balance sheet as a debt and can be repaid anytime by the company. No tax liability will arise on eitther side unless you start charging interest, receiving shares, etc, etc

Eric Mc

122,276 posts

267 months

Tuesday 14th March 2006
quotequote all
If you use the money to buy shares in the company or to make an injection of capital into a non-limited operation (partnership, for instance), there are no tax implications either.

Why do you think tax might be a problem?