Using limited company funds to buy property? | AccountingWEB

Using limited company funds to buy property?

Hi everyone,

I was hoping for some advice on investing funds from a limited company...

The main business of the company is IT consultancy, the business has built up funds over the years which the director wants to leave in the company as any further dividends he takes will exceed his £40k threshold & therefore be taxable at 25%. Essentially the director wants the company funds to work better than sitting in a 1.5% interest account.

So is it advisable in this situation for the director to invest the funds in buy to let property (no mortgage required). Understand that Tax will be payable on rental income and also CGT if the property is sold, a secondary hit will be taken when the director eventually withdraws company funds or closes the company down. Are there any other pitfalls with this option to make it not advisable?

Thanks in advance!

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Have you thought about pension contributions?

zeofiles |

zeofiles has alluded to it ...