15:20 PM, 23rd May 2016, About 8 years ago 9
I’ve been contracting through a one-person limited company for 5 years now and have accrued profits that I’d like to invest in Buy to Let properties. I’ve read about setting up an Special Purpose Vehicle (SPV) to invest through, but what I can’t find any details on are the options for transferring the deposit between my trading company and SPV.
There seems to be 2 options. I could make my SPV a shareholder of the trading company and transfer the deposit as a dividend. Not sure whether there are other implications of linking 2 companies in this way. The other option seems to be a commercial loan to the SPV – but then I need to charge commercial rates of interest? It also means the companies are linked until the SPV can pay that loan off – which could take a long time.
Does anyone have any experience in this area?
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