Buying a house with Company funds

[hyperD]

There may be a grey area: your company diversifies into the wine business and buys a plot of land with a vineyard and the "house/office" with a cool, wine storage cellar to store the wines and possibly entertain customers with a homely restaurant, rooms, ensuite bathrooms etc.

That's my plan anyhow...

[BankingContractor]

If you HAVE to buy a property now, then perhaps there is a case for buying it within the company.

You'll save the personal tax associated with taking out such large dividends and if property prices stay flat or go down, your company will benefit from this 'loss'.

Also, you can 'time' the sale of the property to yourself, when you feel the market is at its lowest. Granted there are taxes and fees to pay but do the sums.

[tim123]

It has been talked about on these forums a fair few times in the past, yet I have never heard of anybody actually doing it......

Losing the PPR relief is a pretty big reason not to do it.

The only time that it makes sense is if you're a non dom and can avoid CGT on the increase in value anyway.

tim

[ASB]

Losing the PPR relief is a pretty big reason not to do it.

The only time that it makes sense is if you're a non dom and can avoid CGT on the increase in value anyway.

tim

Doubtful. If it's owned by the company then whether the owners of the company are non dom makes no difference.

[tim123]

Doubtful. If it's owned by the company then whether the owners of the company are non dom makes no difference.

You're probably right,

But this is how the 'stamp duty' fiddle on mega million pound houses works. You put the house inside a company and then when you sell, you sell your shares in the company and avoid Stamp Duty on the house sale (because there isn't a house sale). But it only works if the seller is a non dom (and, presumably the buyer needs to be one as well - otherwise they've bought a bundle of tax trouble).

HMRC are looking to close this loophole (or have already).

tim