rudolf
Apprentice
Joined: 31 Mar 2006
Posts: 6
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 Posted: 02/19/08 - 00:34 Post subject: |
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| Hello Robert. Buying property through second limited company is something that people do nowadays. Whether it will be successful depends on lot of factors, such as planned income, amount of property, its value etc. what I’m going to tell you are some tax implications in this case. I hope it will help you to make your decision. When it comes to buying a property, like you asked, there are two cases. If you transfer already bought property to your new company, you will be eligible for CGT on eventual gains (if now property’s worth is higher than what you paid). This will happen no matter if you sell or gift the property to the company. There is “holdover” relief for this but it is not available in all cases. Another tax that you will have to pay is Stamp Duty Land Tax whose rates go from 0% to 4%. If you rent your property, you will be eligible for the corporation tax. Have in mind that this tax will be 0% if your income is less than 10 000 pounds. But, if you decide to sell a property through a company, you may have to pay double tax charge. So, think of all the implications, both commercial and about taxes, before you decide what to do. I wish you all the best in your future career. |
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