buying a building

[lilelvis2000]

Wife and I have decided to by a commercial property.

I'm thinking about setting up a Ltd co. to keep the property. My thinking is that the profits can be extracted out as dividends. My thinking is this is better than me owning it as I reckon as then I'd be paying personal tax on the rental income.

Am I on the right track. Any gotcha's I need to watch out for?

[captainham]

You don't mention if you have previously done a search for this.

For someone with over 3,000 posts, I do hope you have: http://forums.contractoruk.com/welco...uk-forums.html

This is asked probably every other day but general advice always comes back to 'it's not worth it'.

[eek]

Re: buying a building

You don't mention if you have previously done a search for this.

For someone with over 3,000 posts, I do hope you have: http://forums.contractoruk.com/welco...uk-forums.html

This is asked probably every other day but general advice always comes back to 'it's not worth it'.

That was for buy to let property. Commercial property is a different market although I think it's often a pension option

[Moscow Mule]

This is asked probably every other day but general advice always comes back to 'it's not worth it'.

That advice often pertains to bringing it into an existing Ltd.

The OP is talking about starting a new Ltd which knocks out a lot of the objections.

I'd suggest the best way to find out is to do the sums...

[Jessica@WhiteFieldTax]

Yes, do the sums, however the starting point for an advisor is always trade through a company, own assets privately.

[Jessica@WhiteFieldTax]

Wife and I have decided to by a commercial property.

I'm thinking about setting up a Ltd co. to keep the property. My thinking is that the profits can be extracted out as dividends. My thinking is this is better than me owning it as I reckon as then I'd be paying personal tax on the rental income.

Am I on the right track. Any gotcha's I need to watch out for?

Question is where is your return? Rents or capital growth. If its capital growth then personal ownership would be more attractive.

[lilelvis2000]

Thanks all,

Wife and I will be putting our own businesses into the property, so long term capital growth is what we are hope to be achieving. There is a small flat as part of the property which will bring in a small amount of revenue, probably enough to cover bills and rates.

It is a close call. but I think a joint ownership with wife and I would be better in long run.

Now what would Amazon do?