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Peer to peer lending through a ltd company

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I have a Ltd property company for simple BTLs. 

I am looking at investing some surplus cash into peer to peer property funds. It would be preferable (from a tax perspective) to lend from my company and the company earns the interest. My accountant has indicated that this is fine. 

I wonder whether there may be adverse consequences from mortgage lenders if the Ltd company is engaged in this activity?

Do any hubbers have experience of this?


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Hey JJ,

Check with your accountant, but I think the general rule if your company is a SPV is that no more than 20% of your income can come from this extra activity.
I've not tested this past lenders before, but I think it would only come into play if they looked through your finances and questioned where the returns came from, and you'd just have to validate it with some documents showing the loan, as they want to be sure it's not dodgy nor is it going to get the tax man chasing you, as then their 'first charge' on the asset isn't really a first charge, as the tax man can supersede them.

In regards to loaning/investing from LTD co - I do this from my other company, and also do it as a means to invest in my property company from my main business.


Tommy | Trifecta Properties
Website: www.trifectaproperties.co.uk

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