Brendan Burgess
Founder
- Messages
- 52,269
This issue was discussed briefly in today's Indo.
It is always better for the owner of a company to buy a property personally and rent it to the company.
However, if a company has bought the property, this could be a good time to transfer it out to the owner. As prices are depressed, the value would be low and so the CGT within the company would be low.
Stamp duty has been reduced to 6% recently.
I think that the optimum time to buy the property would be when it is at the price which the company paid for it. There would be no gain or loss to the company and the buyer would be getting it at a full price.
If it is bought below the purchase price, the company is losing money and probably can't use the CGT losses. The buyer is getting it at a low price and would pay CGT on any subsequent gain.
Take professional advice before doing anything, as there are now VAT implications as well.
Brendan
It is always better for the owner of a company to buy a property personally and rent it to the company.
However, if a company has bought the property, this could be a good time to transfer it out to the owner. As prices are depressed, the value would be low and so the CGT within the company would be low.
Stamp duty has been reduced to 6% recently.
I think that the optimum time to buy the property would be when it is at the price which the company paid for it. There would be no gain or loss to the company and the buyer would be getting it at a full price.
If it is bought below the purchase price, the company is losing money and probably can't use the CGT losses. The buyer is getting it at a low price and would pay CGT on any subsequent gain.
Take professional advice before doing anything, as there are now VAT implications as well.
Brendan