Hi
First of all, apologies, I know this subject has been brought up elsewhere, however after reading all the posts I'm probably more confused than when I started.
This is my situation.
I am an IT contractor through my own limited company. I want to diversify into other areas and eventually get out of the IT industry all together.
I am the only director, and my wife receives a salary as company secretary.
I am currently looking at buying a property for £90k, a bit of renovation and selling for a £20-25k profit. I expect to keep the property only for 2 months.
I have enough cash in the company bank account to pay for all of this. I do not have any spare cash in my personal account. If I take any more money out of my company as dividends I will pay higher rate tax.
I have a few questions about this:
1. Am I allowed to use company funds in this way - or would I need to change my company structure?
2. I basically need to know if I would be better off borrowing the cash and buying/selling the property personally, or using the company to buy and sell the property. Perhaps I could borrow the money from my company (at 5% per annum?)?
3. If I do buy through the company can I offset any costs against the company, i.e. renovation and estate agency fees?
I know that eventually will need some financial advice from professionals, however it would be good to get a few opinions first.
Thanks.
