If you're looking for a coherent answer, you're going to have to express yourself a lot clearer than you have here and in the opening post.@T McGibney and @BB :
It's the road seldom taken, I accept - usually because of the road's end.
But regardless of how the business owners got there, is the path towards separating the houses from the business viable as described ?
Debt? The owners gave a loan to the company?the business loses the investment property but reduces its debt to the owners by the same amount.
Debt? The owners gave a loan to the company?the business loses the investment property but reduces its debt to the owners by the same amount.
But paying CGT twice is skinning a business owner.
But the rate of CT on rental income is 25% and there's a close company surcharge on top of that, assuming there's not been dividends paid... so the comparison isn't anything like 12.5% vs 40%; it's more like 39% vs ~50%, along with the conundrum of how / when the value can be realized by the owners...@fistophobia
I think that a lot of Ltd Cos might have done this sort of thing though maybe only to the extent of getting 1-2 houses.
I'm not saying that they were not unwise to have begun a long term commitment without proper tax/accounting/legal advice.
Just that it happens. And especially when people see 12.5% corp tax versus the higher income tax rate of 40 % applicable to sole traders and when they are bursting to bag a house and settle down like everyone else.
We can compare advice later when I get it.
You appear to be describing the owners' equity.Debt? The owners gave a loan to the company?
The owners gave all the company's capital to it.
As such, in accounting terms at least, the business owes its owners all the capital in it.
In the most general of terms, there shouldn't be, as the VAT on property regime was reformed about 15 years ago, but this is the least of the owners' worries here.Is there also a VAT issue when a company sells a property which they bought new?
If they bought > 15 years ago, did not pay (offset) the VAT at the time, then sold now. Would Revenue not still come calling to collect the VAT on the new sale price?In the most general of terms, there shouldn't be, as the VAT on property regime was reformed about 15 years ago, but this is the least of the owners' worries here.
Impossible to tell based on such scant information.If they bought > 15 years ago, did not pay (offset) the VAT at the time, then sold now. Would Revenue not still come calling to collect the VAT on the new sale price?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?