Holiday home purchase thru Company

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Jimbobp

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Heh all,
I'm a director of a ltd. company. My parents (who are also directors of the company) are at retirement age and would like to have a holiday home for themselves and for the rest of the family.As they refuse to take funds from the company I would like to try and finance the purchase thru the company for them, and would like to know ur opinions on the following:
  • What are the implications of buying a hh property thru the company (we already own our office building and are paying a mortgage on this) - I've heard somewhere about double taxation if we had to sell it later??
  • WE have enough money in the company to buy the property outright (although it would eat more than half our cash reserves), would it be a good idea to finance the purchase by cash in the current e'ment or should we try part finance it?
  • I'm aware of the ability of a self directed pension to accomadate a property purchase, but the property cannot be for own/family use - is there any exemptions on this for retired/retiring people?
Any feed back greatly appreciated - great site

j
 
There are lots of considerations in this, such as retirement relief, retirement planning, maximum pension funding followed by 25% tax free cash etc, but in a nutshell, no, the company should not buy the holiday home. Your accountant, or tax adviser, should be able to give you all the advice you need, and the advice should be well worth its cost.
 
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