Treatment of loan/vouchers
LaurenS
Registered Posts: 8
My client is needing to invest in new machinery and to raise funds is considering inviting individuals/companies to invest over a period of 3 years. During that 3 year period any amount invested would accrue a nominal rate of interest which will be paid half yearly in vouchers that can be exchanged for goods. The vouchers would have a life of one year at what point they would expire The capital amount of the loan would be repaid in full after the 3 year term.
My client has put together an agreement which a solicitor has approved.
Has anyone come across this before? How have you treated the obligation for the vouchers?
Any comments appreciated.
Thank you
My client has put together an agreement which a solicitor has approved.
Has anyone come across this before? How have you treated the obligation for the vouchers?
Any comments appreciated.
Thank you
0
Comments
-
As the vouchers are to be exchanged for goods it sounds like a taxable supply to me. Would like to see comments from others though!0
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