Purchase of business premises - Business Structure

[merlot05]

Hi,

I am intending to purchase a building in Dublin with my spouse that I will use as my business premises.

I know there is an older post discussing the pro's and con's of having the premises in the company name versus individual name. I want to have it seperate from my business but my question is should I have it in the name of a seperate company set up just for the property with myself and spouse listed as directors or should I keep it in our personal names?

One of my reasons for setting up a seperate company was to withdraw income from it that my spouse could use their tax credits against.

Also if we were not to set up a company and just purchase the property in our individual names, does it make any difference if we jointly purchase it or just purchase it is my spouse's name? Purely for the reason if they were not working in the future they could use the rental income as income.

Thanks

 

[Brendan Burgess]

I know there is an older post discussing the pro's and con's of having the premises in the company name versus individual name.

Did you read that Key Post?

I don't think that much has changed since it was written.

You are better off buying it in your own name than in the company's name.

If you want to use up your wife's tax credits as a PAYE employee, can she not work for your company?

 

[Joe_90]

We have always advised against purchasing property in a company, we are reconsidering this in relation to property used as a HQ. If you consider the company has the capacity to repay funds from 87.5% of annual profits while the individual repays from 48% of annual profits.

It is important to consider your stage of life ie will you be renting the property to a third party at some stage in the future when it's not tax efficient because the company has to pay 40% CT then you have pay income tax to get it out.