Covid loan fraud?

[percypigwig]

I know of a small UK business that used the entire CBILs (covid) loan to purchase residential property instead of using it within the business. That’s £250k split between two directors who both used it to obtain larger mortgages to purchase a house each. Then used the loan itself to renovate the properties. Is this classed as fraud? Is this something their accountant would likely spot and notify HMRC of? Or is it perfectly acceptable to do? There’s not much info I can find online about this. Thanks

Seems dodgy, those loans were to keep businesses afloat. Funds for property should have been for business properties not residential, unless their houses are listed as business property?

thats awful Op. yes its fraud, The money wasn't for buying a BTL investment

No property is 100% residential. They live there, I've seen the pictures. Definitely not BTL either. This is where they currently live and are doing up. Will it catch up with them though? Will HMRC care as long as the loan is paid back (which I assume it is)?

Lots of people did this ,bought houses or cars
Not sure that HMRC can/will do anything about it
Doubt their account will do anything
There was no control over the lending

Nevertheless, I might report to HMRC anonymously. Will the business know an anonymous complaint has been made against them though? Will HMRC tell them that or do they just investigate without informing of a complaint? Thanks

Anyone?

Don’t know the answer but I know someone who took the loan so her put could put it down as a deposit on a house as he didn’t earn enough to get the house he wanted. They also did dodgy wage slips for him to inflate his income, so tax and mortgage fraud. Not ok.

I’m pretty sure it’s anonymous to report.

If they have bought properties personally ( outside the company) they must have drawn the money out of the company and that alone has tax implications (unless the company owed them that money), so it’s not just loan fraud (ie not using the money as allowed for) but also tax evasion if they don’t pay the tax on the amounts taken out.