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Can I buy property using my company funds

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I have build up some surplas cash in my business and would like to use it to invest in a property as an investment. I think I understand all the elements around buying properties through a limited company however my question is :

If I set up a separate company B to invest in the property which is wholly owned by |Company A which is my existing contracting company can I just transfer funds 250K from company A  into company B to purchase the property ?? Is it as straight forward as that .

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By Accountant A
12th Sep 2019 15:14

If you would like me to prepare you a report on the issues raised by your post, please PM me your details and I will email you all the necessary paperwork and my fee quote.

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Psycho
By Wilson Philips
12th Sep 2019 15:19

Yes it is pretty much as straightforward as that. Whether it is a good idea or not is another matter.

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Replying to Wilson Philips:
By penelope pitstop
14th Sep 2019 01:26

Nice one Cyril!

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By Duggimon
12th Sep 2019 15:31

I know when I've got a cool quarter mil in my pocket I like to invest it casually based on anonymous advice handed out over the internet. What's the worst that could happen?

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By paul.benny
12th Sep 2019 16:44

Go and get (pay for) some proper advice from a local professionally qualified accountant. Make sure they are ICAEW or ACCA (or ICS in Scotland).

It'll probably cost you well under 0.5% of your investment.

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Replying to paul.benny:
By JCresswellTax
13th Sep 2019 09:56

Sorry why should they be ICAEW or ACCA?

Do you think a chartered accountant is better placed to give this type of advice than someone with an actual tax qualification like ATT or CTA?

Or someone who has been working in tax for a long time without a qualification?

Really don't get your train of thought here. Or maybe there just wasn't one and you always just advise to speak to CA about anything and everything?!

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Replying to JCresswellTax:
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By paul.benny
16th Sep 2019 10:00

You're right of course, that there are other professional bodies whose members may be equally qualified to assist the OP.

Not that it matters here as the OP apparently hasn't returned even to acknowledge the responses to his/her question.

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Replying to paul.benny:
Hallerud at Easter
By DJKL
14th Sep 2019 13:10

You missed an A from ICAS and they should come first ( The older institute)

Bit like the Royal Navy being the Senior Service.

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Replying to DJKL:
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By paul.benny
16th Sep 2019 10:04

Thank you for pointing out the missing letter. I don't, however, agree that age should require precedence.

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By Bob Loblaw
12th Sep 2019 16:58

Absolutely correct. It is, to quote a prolific and extremely annoying rodent, "Simples!"

And if you can't trust Theresa May, she pilfered it from an animated meerkat.

Can I also just add, unlike the Negative Nellies who suggest you need "to give us all the facts" and "to pay for advice from qualified individuals who can answer your questions fully" I would LOVE to act as an intermediary to help facilitate this purchase. All you have to do is send me the address and the cash and I will definitely not spend it on ket and hookers. Not got my fingers cross or anything. How would I be able to type if I was doing that???? Ha ha ha.

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Replying to Bob Loblaw:
RLI
By lionofludesch
14th Sep 2019 10:36

Bob Loblaw wrote:

Absolutely correct. It is, to quote a prolific and extremely annoying rodent, "Simples!"

The meerkat ?

Meerkats aren't rodents. They're an African type of mongoose. They generally speak English with a Russian accent.

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RLI
By lionofludesch
14th Sep 2019 10:26

Yeah, one company can borrow money from another company.

As you think you understand all the issues about companies owning rental property, it'll be grand.

Though I'm a bit surprised that you chose to come on the forum to ask about probably the most straightforward link in the chain.

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