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Use of home / rental / business purchase - best choice when building extension?

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    #21
    Originally posted by The Tall Designer View Post

    Er, it doesn't of course - thats the second of the two options I was looking at, as more tax efficient than 'use of home office"
    Ok, so have you accepted that getting the business to pay £40K to build an extension onto your home is a non-starter?

    Assuming so, the question you're actually asking is "Can I rent out part of my home to my company?". It matters not that you've will have just personally spent 40K on extending your home.
    Last edited by Paralytic; 11 August 2021, 16:55.

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      #22
      Originally posted by The Tall Designer View Post

      Maybe, but I own the house and the business with nobody else (no partners, marriage etc) so if thats a thing, I could do it. I mean I expected the rental agreement thing to be the easiest way of doing it, given the issues with capital gains and all sorts of other crap. I'm just trying to find out for sure what the full options are and expressly not just doing what the majority do 'cos they are so often... wrong.
      What's to stop you selling the business (either in part of in whole) in future? That's why no mainstream mortgage company will entertain a business part-owning your home. You might get some interest from commercial mortgage lenders, but be prepared to pay significantly higher mortgage rates that the high street lenders.
      Last edited by Paralytic; 11 August 2021, 16:56.

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        #23
        Yes, but your business is limited and the mortgage will be joint and several, so if you piss off, the business is liable for the whole thing.

        If the property is more than 60% for business then it can be covered as unregulated, so someone will lend to you. For a cost.

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          #24
          Originally posted by Paralytic View Post

          Ok, so have you accepted that getting the business to pay £40K to build an extension onto your home is a non-starter?

          Assuming so, the question you're actually asking is "Can I rent out part of my home to my company?". It matters not that you've will have just personally spent 40K on extending your home.
          Accepted? This isn't a fight, we're not in court, I'm asking questions because I want to know what the facts are - I could easily be wrong - thats why I am asking my genuine peers who I thought might want to be helpful.

          And I don't think that the 40K part matters - if there is a rental agreement - I quite plainly said I was looking at two things and one was rental, one was doing something as a cost to the business.

          Instead people are having a go at me and accusing me of trolling when all I am doing is asking a question! I'm not an accountant and mine is bloody slow - so I am asking people in similar situations.

          Why is this place so hostile!?

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            #25
            Have you considered an ecoshed?

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              #26
              Originally posted by The Tall Designer View Post

              Maybe, but I own the house and the business with nobody else (no partners, marriage etc) so if thats a thing, I could do it. I mean I expected the rental agreement thing to be the easiest way of doing it, given the issues with capital gains and all sorts of other crap. I'm just trying to find out for sure what the full options are and expressly not just doing what the majority do 'cos they are so often... wrong.
              It isn't. The easiest thing to do is claim the weekly/monthly allowance that is place for just this type of thing.

              not just doing what the majority do 'cos they are so often... wrong.
              Really? They are? Sweeping statement to say you don't appear to know what the majority are doing.

              Er, it doesn't of course - thats the second of the two options I was looking at, as more tax efficient than 'use of home office"
              Have you crunched the numbers to see if it is tax efficient? More so than the third option you keep ignoring?

              Why is this place so hostile!?
              Because you didn't bother to take 2 mins to look at where this should go in the forums. We have a Accounting/Legal section but you've dropped it in General. The subheading of this section is 'All hope abandon ye who enter here. Seriously.' for a very good reason as you are finding out. Little to no moderation here so it's open season on you for the daft idea and still defending it 4 pages in. Tends to be what trolls do in General unfortuantely.
              Last edited by northernladuk; 11 August 2021, 17:48.
              'CUK forum personality of 2011 - Winner - Yes really!!!!

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                #27
                Originally posted by The Tall Designer

                Wait why am I trolling? I'm a contractor, I've got a real question, I genuinely thought people here would know and be able to offer some help - what have I done wrong? Why on earth is this possibly trolling?
                Do you like gladiators?
                "You’re just a bad memory who doesn’t know when to go away" JR

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                  #28
                  Thread locked. Egregiously nasty posts removed.
                  Down with racism. Long live miscegenation!

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