Originally posted by b0redom
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Reply to: B2L as a business?
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Previously on "B2L as a business?"
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Aha, I was under the impression that purchasing assets reduced the profit of the company, as this isn't the case, it would seem that the numbers may need looking at again.
Thanks!
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Originally posted by b0redom View PostWhat extra tax? I already have a 2nd property I've owned for quite some time, and I know I'll have to pay CGT when I come to sell it. I was under the impression - probably incorrectly - that trading through a company, I wouldn't be eligable for capital gains taxes - just CT on the profits from the sales?
I was also hoping to offset current CT as buying a property is a purchase, and will reduce the 'profit' of the company. Of course IANAA.
Asset purchase does NOT reduce profit. There is nothing chargeable (except any first year chargeable depreciation).
However, there may still be some enterprise zones where purchase of certain types of property does give rise to substantial available relief. Though this might lead one to question why the government are prepared to effectively bribe you to invest in these areas.
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Originally posted by b0redom View PostCool I'll check it out.....
Since you are struggling to find the old threads, here's a few:-
http://forums.contractoruk.com/accou...e-renting.html
http://forums.contractoruk.com/accou...tment-tax.html
http://forums.contractoruk.com/accou...rough-ltd.html
Another thing to consider is that if the property is "holiday" in nature rather than residential different rules apply. Also if it is commercial property it is different rules. Thus there is probably a different case to be made for these types of property as to whether it should be owned individually or corporately.
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Originally posted by Lockhouse View PostI would suggest a search on these very fora where this subject has been much discussed.
Originally posted by Lockhouse View PostIn a nutshell; IMVHO Buying property through your company is in general not as good a move as owning it personally. I have a BTL owned by myco and would not advise it unless you have a particular reason why you think it would work for you. Tax savings upfront on purchase are generally outweighed by lack of flexibility and this includes extra tax on selling. I know you say that you wouldn't sell and would use the property as your pension but who knows what will happen in 20 years time?
I was also hoping to offset current CT as buying a property is a purchase, and will reduce the 'profit' of the company. Of course IANAA.
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Originally posted by b0redom View PostHi All,
With the current credit crunch, and house pricing collapse, I'm seriously considering buying some property to let out. My plan was to set up a new company - MyCo Holdings and fund the property purchase through a loan from MyCo.
Ideally I'd like to grow the company over time to the level where MyCo can become a minor entity, and I would be able to draw my pension from MyCo Holding's earnings.
Is there any reason to hold property personally, rather than through a company? I'm not planning on making a quick buck on this, I expect to do this over at least 20 years, and to start to buy in a year or so....
In a nutshell; IMVHO Buying property through your company is in general not as good a move as owning it personally. I have a BTL owned by myco and would not advise it unless you have a particular reason why you think it would work for you. Tax savings upfront on purchase are generally outweighed by lack of flexibility and this includes extra tax on selling. I know you say that you wouldn't sell and would use the property as your pension but who knows what will happen in 20 years time?
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Originally posted by b0redom View PostHi All,
With the current credit crunch, and house pricing collapse, I'm seriously considering buying some property to let out. My plan was to set up a new company - MyCo Holdings and fund the property purchase through a loan from MyCo.
Ideally I'd like to grow the company over time to the level where MyCo can become a minor entity, and I would be able to draw my pension from MyCo Holding's earnings.
Is there any reason to hold property personally, rather than through a company? I'm not planning on making a quick buck on this, I expect to do this over at least 20 years, and to start to buy in a year or so....
When I was considering this I found this useful:-
http://www.taxcafe.co.uk/propertycompany.html
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B2L as a business?
Hi All,
With the current credit crunch, and house pricing collapse, I'm seriously considering buying some property to let out. My plan was to set up a new company - MyCo Holdings and fund the property purchase through a loan from MyCo.
Ideally I'd like to grow the company over time to the level where MyCo can become a minor entity, and I would be able to draw my pension from MyCo Holding's earnings.
Is there any reason to hold property personally, rather than through a company? I'm not planning on making a quick buck on this, I expect to do this over at least 20 years, and to start to buy in a year or so....Tags: None
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