Hello, any thoughts on the best way to purchase business premises?
Husband & wife, both basic rate tax payers (and will probably remain as such) are to purchase a shop with 75% business loan attached.
Their principle trade will be the shop trading downstairs but the premises also has a flat upstairs which will be a residential let.
This is in preparation for a meeting with them. The bank seems to be proceeding with the loan on the basis of a H & W partnership, which may well be perfectly fine but should consideration be given to buying and trading via limited co? Or buying via a SIPP? Would this complicate the purchase process?
Also note that both are < 10 years from state retirement age.
Replies (2)
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Property purchase
A lot depends on the bank and their attitude re lending , the Limited liability route is likely to not be that limited.
Looking at things from a tax perspective, what is their plan for the property/business in ten years?
Will the exempt rental cause vat issues?
Is there vat on the price?
If via a SIPP are there funds within the SIPP already, if not probably a non starter as borrowing by SIPP is restricted, in addition most property SIPP providers are a right royal pain to deal with so transaction costs can escalate.
(we need an enviromental survey, bat survey etc etc)
Sorry, need to rush now, parental taxi call out to St Andrews.