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As long as you have someone willing to lend you money, yes.
by charlesdm 8y ago
As long as you have someone willing to lend you money, yes.
- pjc50 8y agoOr you could lend it to yourself, which is what's happening in these situations. Something similar happened to Maplin: https://leftfootforward.org/2018/03/revealed-how-private-equity-contributed-to-maplins-demise/ https://leftfootforward.org/2018/03/revealed-how-private-equ... - a shell company called Rutland charging usorious rates of 15% to the trading business. It also functioned as a tax dodge: in the unlikely event of Maplin making an operating profit, the interest repayments would not have been taxable whereas other means of profit-taking would have been.
- charlesdm 8y agoAs per OECD recommendations (and this was enacted into law in 2017 by the UK) the deduction of interest expenses is limited up to 30% of corporate EBITDA (above a £2m de minimis). While that allows for some tax avoidance, in the grand scheme of things it does not allow for a lot.