I read most of the key post on why it's generally a very bad idea to buy property via your company (and I do understand why and agree) but I'd like to float a slightly unusual set of circumstances and see if they justify an exception to the rule.
Circumstances:
I own a Ltd company 90:10 with my wife.
We'll both be 55 in 3 years at which time we plan to liquidate the company and distribute the net proceeds all of which will be subject to Retirement Relief.
Company trades well and has built up excess cash of €250,000.
We want to buy a place in Spain to retire to and have identified a property costing €250,000.
In order to put the excess cash to some use now and secure the property we want in Spain I'm thinking of allowing the company to buy the property, rent it out commercially via a local agent for the next 3 years (it may or may not generate much rental as there's lots of competition locally) and then prior to liquidating the company we personally buy the property from the company for e.g. €255,000 (assume that's market rate supported by a local estate agent valuation) and the €255,000 net of CGT on €5,000 goes onto the Balance Sheet as cash for distribution via the liquidation.
I've a feeling the above will either be offside in a number of ways tax wise or company law wise or is just dumb as there's a far better way to achieve buying the property now without either doing so from (income) tax paid personal funds or having to wait 3 years to buy with tax free retirement relief funds.
Don't be too harsh on me!!
Circumstances:
I own a Ltd company 90:10 with my wife.
We'll both be 55 in 3 years at which time we plan to liquidate the company and distribute the net proceeds all of which will be subject to Retirement Relief.
Company trades well and has built up excess cash of €250,000.
We want to buy a place in Spain to retire to and have identified a property costing €250,000.
In order to put the excess cash to some use now and secure the property we want in Spain I'm thinking of allowing the company to buy the property, rent it out commercially via a local agent for the next 3 years (it may or may not generate much rental as there's lots of competition locally) and then prior to liquidating the company we personally buy the property from the company for e.g. €255,000 (assume that's market rate supported by a local estate agent valuation) and the €255,000 net of CGT on €5,000 goes onto the Balance Sheet as cash for distribution via the liquidation.
I've a feeling the above will either be offside in a number of ways tax wise or company law wise or is just dumb as there's a far better way to achieve buying the property now without either doing so from (income) tax paid personal funds or having to wait 3 years to buy with tax free retirement relief funds.
Don't be too harsh on me!!