Setting Up A Property Development Company

[TheDonkey]

I am interested in buying a house with land attached that comes with planning permission. Am I better to buy and develop it as an individual or to set up a company?. I plan to sell the lot after developing it.

 

[colc1]

I am interested in buying a house with land attached that comes with planning permission. Am I better to buy and develop it as an individual or to set up a company?. I plan to sell the lot after developing it.

Judging by the negative attitude on this site and in general could you have missed the boat on making a "killing" like that?

 

[TheDonkey]

Thanks. I just need to know if its a better option to do it as an individual or a company?

 

[CCOVICH]

See this Key Post.

From what I have read on AAM before, it is generally recommended that it is better for individuals to hold property. Have a search for posts made by Brendan-he generally has something to say on the matter.

If in doubt-seek professional advice over and above what you read on AAM.

 

[dancarter]

See this Key Post.

From what I have read on AAM before, it is generally recommended that it is better for individuals to hold property. Have a search for posts made by Brendan-he generally has something to say on the matter.

If in doubt-seek professional advice over and above what you read on AAM.

If this is a once off probably not worth your while setting up a co but if your planning on doing this a few times the most popular and common method is to purcahse site in your own name and develop property in a ltd company name, your accountant should be able to talk you through it fairly easily.

 

[howareya]

If you purchase and develop personally you will be hit with top rate of tax 42%. If you do it through a co. you get hit with 12.5% tax but then you have the task of getting money out of the company which would probably result in high rate of tax being paid.
Your probably better off doing it personally from this point of view.

 

[TheDonkey]

Thanks for all the advice