Tax on related party purchase

HI

 

My limited retail trading company happens to own a property which it rents out. I would like to buy the property but cannot afford the full market price (£1.3m). I have equity and can get a mortgage to £1m. 

If i buy for £1m but declare to the Inland Revenue that it is below market price of £1.3m what additional taxes must the business pay for the beneficial deal? What tax areas should i be considering?

thanks

Rando

 

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Market value

Euan MacLennan |
Euan MacLennan's picture

Also

Paul Scholes |
Paul Scholes's picture

Are you sure, Paul?

Euan MacLennan |
Euan MacLennan's picture

Think so

Paul Scholes |
Paul Scholes's picture