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Property Investment Company

I have a client who owns a property through his limited company and rents the property out and so the only asset in the balance sheet is the property. I have always thought that this would be classed as an investment company and therefore Corporation Tax at the main rate would be payable but from reading various material it appears that this is not the case and I wondered if someone could clarify this for me please. Thanks.


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Depends ...

... on to whom the property is let. If to unconnected persons, it's not a CIHC and so small/marginal rates will apply.

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Thanks. It's being let to a related company so I assume in this instance it will be classed as an investment company and subject to the main rate.

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it is an investment company - but is it a close investment holding company? these are not the same concept.


if, all it does is let to a connected person then it will be a CIHC and subject to tax at the full rate.


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