Using limited company funds to buy property?
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!
- Can an owner hold company money 302 6
- Account and Taxable Profit 293 17
- Accounting for corporation tax 214 6
- Class 2 NIC 263 5
- Probate services 427 9
- Is self-employment "another job" for PAYE 382 7
- Is Xero payroll as rubbish as I suspect it is? 1,704 37
- Vat payable on van 146 1
- Bookkeeping Rate of Pay 2,829 42
- Invoices raised after company dissolution 242 7
- Community Faux Pas 931 26
- Cash gift from India 138 1
- Is cloud accounting actually pretty pants? 2,310 40
- Windows10 190 4
- Taxi Drivers Cost of Sale 624 24
- Digita Accounts Production Advanced - general perception 474 25
- A thursday afternoon muse 238 2
- Barrister "M25 Patch"? 393 6
- Is HMRC Basic Tools basically wrong? 872 5
- Unusual marketing methods for accountants 797 14
- ACCA Shenanigans subject of EDM 835
- Benchmark accounting software 691
- Members in Public Practice 515
- Sole trader registering for the first time 328
- Oplex Careers CPD 321
- What are HMRC implying? 305
- VAT 258
- My own & spouse's Irish returns & ROS 248
- Payroll manager and the cloud 218
- Is the APN valid 196