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Backing a Family Business: Should You Buy Shares or Lend?

Shared from Tax Insider: Backing a Family Business: Should You Buy Shares or Lend?
By Sarah Bradford, July 2026

Sarah Bradford considers the implications of buying shares in a company and making a loan to a company. 

A person may wish to offer financial help to a family member or friend to get their business off the ground.  

Where the business is run as a limited company, a person could consider buying shares in the company or lending money to the company. This article considers the tax implications of each. 

However, it is important to look at the overall picture, not just the tax considerations, in deciding which route to take. It is advisable to take professional

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