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!
- Anyone else still working this week? 380 12
- Using home as clients registered address 95 3
- Client being taken to court and really do not know what to do 502 12
- Section 165 TCGA 1992 - time limit? 97 2
- How much does the company pay 691 30
- AIA 282 18
- Van Benefit in Kind Query 171 5
- Childcare vouchers 324 6
- THEATRE SHOW - HIRE - VAT PAYABLE ON TICKET SALES 45 1
- 10 Worst xmas presents for an accountant 235 2
- I have done a terrible thing 765 15
- HMRC property income enquiry 353 8
- Not paying accountant 1,864 46
- Cash basis VAT return 97 1
- VAT on Business Premises 95 2
- Consolidation Software 144 2
- New Incorporations - ERTNAC hoax - anyone else seen this? 1,034 11
- Accountancy practices - are you closed over Christmas or do you let your staff take it off? 1,207 32
- LLp Profits 142 5
- two business from one premises 147 2
- Accounting referance change & deficient accounts. 504
- corporate hierarchy 467
- Advice - 319
- Anyone had HMRC refusing to act on EPS database glitch? 268
- WWOOFers 259
- The booking.com con 243
- Art Gallery - Splitting a property between business and personal use 234
- Cocaine anyone? 221
- Tax liabilities in USA for warehoused products 215
- UK State pension paid in NZ 176