Can Director's Loan be used to purchase Residential Property

[dlp]

Hello !

I understand that the investment of £200,000 can be shown as a Director's Loan.

Once the company has these funds as Director's Loan, and the company purchases a residential property , will it still be considered as a valid investment ?

Thanks

[marcnath]

Hello !

I understand that the investment of £200,000 can be shown as a Director's Loan.

Once the company has these funds as Director's Loan, and the company purchases a residential property , will it still be considered as a valid investment ?

Thanks

Read the guidelines.

Residential property is specifically excluded

[zimba]

The guide is very clear that investment in residential property is not accepted Have you even read the guide ???!

[dlp]

Yes I have read the guidelines.

And Director's Loan and Purchase of Property are both independent topics they have mentioned.
They say that a director's loan is valid investment. They also say that directly buying a resindential property is not.
But no where does it say that after a director's loan that money can and can not be used in a particular way.

A lot of people make this director's loan and this money is then considered as investment in to the business.

[marcnath]

144. The amount of money invested should not:
 include the value of any residential accommodation or property development or property management;

147. If you have bought property for your business which includes residential accommodation, we will not accept the value of this part of the property as investment in the business.


Those seem to be clear and unambiguous.

So not sure if you were reading some other document.