I am quite dubious about posting on here, because the last time I asked a question I was shot down in flames. After reading a few questions too, I have noticed that a lot of people on here use the answers to attack the other persons seemingly lack of knowledge. I do hope that people will be kind! I am an MAAT and therefore not regulated to give investment advice to my clients. However, this is purely for mine and my husbands benefit.
A few months ago I went on a seminar regarding pensions and popping commercial property into a pension fund. I am trying to get my head around if I have understood it correctly so would appreciate any sound feedback. It is my understanding that if a limited company set up a pension fund (i.e mine and my husbands) we can then transfer the commercial property currently owned by the ltd company into that. The pension fund can then rent back the property to the ltd company which would then reduce their taxable profits but the pension fund pays no tax on the rental income. Have I misinterpreted this? If not - what is the catch !!
Secondly, if the pension fund then sells the property there is no CGT -have I misinterpreted this or if not, again what is the catch? Do we have to reinvest the proceeds of sale into the pension fund?
any advice on this would be greatly appreciated - we have a financial advisor and I would at least like to know in my head what is what before we go and see him.
It is a few months since the seminar and I have unfortunately been of very ill health so have not had time to get my head around or revisit it. I have tried looking on the internet but I just get articles from 2012 through to 2014!