property investment and tax

**DaveB** · 12 May 2006, 08:44

Originally posted by JMorley

I run a limited company and have purchased a property through the company. I suspect that I can write the cash invested in the property against tax as a Capital Allowance, however, am unsure. Can anyone tell me whether this is so and how I should describe it in my annual accounts?

Many thanks

Here's an idea. Why dont you ask your accountant. You do have one don't you?

**JMorley** · 12 May 2006, 08:54

No I do not have an accountant, I thought the idea of a bulletin board for contractors on the subject of Accounting/Legal was to share information about such issues. If I am incorrect I shall leave.

**Pondlife** · 12 May 2006, 08:59

Personally, I wouldn't be investing any of my company's hard earnt £s where my knowledge on the subject could be described with terms like "I suspect" or "am unsure". Especially if I was paying someone who knows these things. If you have an accountant, phone them. If not, get one.

**DaveB** · 12 May 2006, 09:02

Originally posted by JMorley

No I do not have an accountant, I thought the idea of a bulletin board for contractors on the subject of Accounting/Legal was to share information about such issues. If I am incorrect I shall leave.

It is indeed, and the advice you get on here will be worth exactly what you paid for it.

You're asking a serious question about tax legislation that could get you landed with some serious legal trouble if you get it wrong. Who would you rather trust your finances to? A bunch of contractors you dont know, on a board you've never been to before, or a qualified taxation professional?

</malvolio>

**JMorley** · 12 May 2006, 09:06

OK then, this is a board for unconstructive sarcasm. I will be off. Just before I go, can you answer me one question though: if you pay an accountant to do your accounts, why on Earth do you post on a discussion board for accounting issues?

**JMorley** · 12 May 2006, 09:09

FAO Malvolio

You are quite correct, I am looking for a snippet of information that I can then pursue by research. I would not implicitly trust any information given, nor expect it to be given with any form of liability for correctness attached.

Thank you for a more reasonable reply then the previous two.

**Pondlife** · 12 May 2006, 09:14

Originally posted by JMorley

why on Earth do you post on a discussion board for accounting issues?

You will probably find that most of the specific tax related questions end up with a typical "ask your accountant and if you haven't got one, get one!" response. Which is good advice in itself. What you will also find here are some excellent recommendations on specialist IT contractor accountants (just search on SJD, darren@1staccounting). You will also find advice/questions on whether to go Ltd or to use a brolly and the pros/cons of both.

You only tend to get a barage of abuse if you ask something that shows a complete lack of research/effort.

Just my opinion and am fairly new here myself.

**JMorley** · 12 May 2006, 09:26

I have looked into this on the Revenue's website, but could find nothing that seemed to show the way for me. I am thinking Capital Allowances, though they appear to be limited to business premises, rather than investments in property.

At the end of the day, I invested 14k in cash, 10k of which can be declared as profit without being subject to Corporation Tax, the remainder I can either write down as Capital Allowance or pay tax on. If I can find a sensible descriptor to put the potentially taxable 4k under I will and if the Revenue do not like my accounts when I submit them they can take issue with me. If I put it down as to the best of my knowledge and am incorrect they tell me to pay the tax. There is no legal requirement to use an accountant, I declare my accounts openly and am happy for the Revenue to do ther job and correct me.

**BlasterBates** · 12 May 2006, 09:38

...and in the process they night investigate and if you've made mistakes charge several thousand in penalties.

...be careful

property investment and tax