Talk me out of this daft idea for my Ltd company

Talk me out of this daft idea for my Ltd company

Author
Discussion

Eric Mc

121,779 posts

264 months

Thursday 18th September 2014
quotequote all
My post seems to have disappeared. What happened?

Steffan

10,362 posts

227 months

Thursday 18th September 2014
quotequote all
Eric Mc said:
My post seems to have disappeared. What happened?
No idea at all Eric I remeber the posts and commented on the excellent advice. Down to PH presumably.

Pit Pony

Original Poster:

8,265 posts

120 months

Saturday 20th September 2014
quotequote all
Eric Mc said:
Kudos said:
Another option could be to take the money out of the company and buy personally for cash (possible tax implication - depends when the money is paid back).
You bet there are tax implications.
There are. Obviously that would push me into a higher tax bracket. And it would impact the university loans, grants, and bursaries my kids might be getting.

Pit Pony

Original Poster:

8,265 posts

120 months

Saturday 20th September 2014
quotequote all
Eric Mc said:
If the company buys the property there definitely will be tax issues -

Benefit in Kind on your or your family's use of the property

Corporation Tax on rental profits (which would possibly be lower than Income Tax)

Capital Gains Tax in the limited company when the property is sold (with loss of the £11,000 personal CGT relief which companies don't get. If the property was owned jointly by you and your wife you would get a combined personal Capital Gains Tax allowance of £22,000).

Additional taxation on you personally if you remove the sale proceeds of the property from the company after the property is sold.
The use by me, would be Monday to Friday in order to facilitate my Consultancy in the East Midlands. Given that in the last 5 years or so my contracts have been 6 months in Telford, 2 years in Derby, 6 months in Stoke, 1.5 years in Derby and 6 months (or will be) in Hemel Hempstead, my ltd company has spent £10K plus on rent/hotels/digs in or near Derby. Looking forward I see more of the same. The next contract will be 12 months, in Derby.
I assume that once this contract gets extended beyond 2 years I'd THEN be liable for benefit in kind for my use?

Corporation Tax on rental? Or in fact on the money that I didn't have to spend on digs/hotels/rent.







worsy

5,776 posts

174 months

Sunday 21st September 2014
quotequote all
R-R?

Is it IT?


Pit Pony

Original Poster:

8,265 posts

120 months

Monday 22nd September 2014
quotequote all
worsy said:
R-R?

Is it IT?
Not Rolls-Royce, not IT. But close enough.

Pit Pony

Original Poster:

8,265 posts

120 months

Monday 22nd September 2014
quotequote all
Note that DERBY council obviously used the plans more than once

http://www.rightmove.co.uk/property-for-sale/prope...

http://www.rightmove.co.uk/property-for-sale/prope...

Anyway, it took 4 days to get the agent to contact me, and he couldn't answer my simple questions

How long is the remaining lease?

Who owns the Freehold?

Are you sure there is an allocated car parking space, as there is no car park, and the 4 spaces on the road are not marked in any way.?

What is the ground rent and what have the residents had to pay for building maintenance in the past?

What he could tell me, was that the owner has decided to redo the kitchen, as he's had no interest.
I told him, I'm a cash buyer, I want to view it as is, as soon as possible (now that I have the wife's mandate) and I'll make an offer based on what I see now, and he can save himself the effort, as I'd rather put my own stamp on it.

I also struck lucky today. Having got nowhere with the questions that I asked the agent, I phoned the council to ask about renting the garages, and spoke to the housing officer. I gained the following information some more relevant than others:

1) There are no garages available because they are gradually taking them back, as people give them up. They plan to remove them but he couldn't tell me what they'd do with the land they are on. I see this as a risk, as it's an unknown.

2) The ones they still own are rented at 80 quid a week, and those people who have bought them, have not moved on. The tenants they have, don't turn over very often.

3) They have replaced the flat roof(s) a couple of years back, and replaced doors and refurbed the stairs and landings recently.

So am waiting for Agent to get back to me with a confirmation of my suggested viewing time.


Pit Pony

Original Poster:

8,265 posts

120 months

Tuesday 23rd September 2014
quotequote all
It is hardly surprising that the vendor hasn't had a bite. The estate agent's numpty obviously has bigger fish to fry. I don't expect instant responses, but it would be nice if they actually answered the phone, or if you leave a message, actually got back to you.

worsy

5,776 posts

174 months

Tuesday 23rd September 2014
quotequote all
Eeek Allenton!

Pit Pony

Original Poster:

8,265 posts

120 months

Wednesday 24th September 2014
quotequote all
worsy said:
Eeek Allenton!
I like to think it's Wilmorton

http://goo.gl/maps/fQ8H2

http://goo.gl/maps/CBIUH

Almost City Point, and nearly Pride Park





Pit Pony

Original Poster:

8,265 posts

120 months

Wednesday 1st October 2014
quotequote all
okay. Update: Spoke with Eric, and my own accountant, and fully understand the tax implications of all this. (Thank you Eric)

However the estate agent's employee, is apparently struggling to get in touch with the vendor to ask him anything at all.

to quote zoopla :

First listed

£55,000 on 13th Feb 2014

Asking price changes

• £50,000 9.1% Reduced on: 21st Feb 2014
• £40,000 20.0% Reduced on: 12th Apr 2014


http://www.zoopla.co.uk/for-sale/details/31970926#...