If your company is intending to make a loan to another group company, just press the pause button: are you sure you have sufficient realised profits? If you do not, you could be making an illegal distribution, risking your corporate reputation and exposing your directors to potential liabilities in the event of insolvency under FRS 102.

The technical complexities around distributions, including paying dividends and making intragroup loans, have been highlighted recently in a variety of ways.