Holiday let business / funding from LTD business

[phib]

Hi all,

We have a Ltd company that currently has a very health cash position.

We don’t need to take the cash out so are looking for a way to use this to potentially fund another business ( holiday let’s or similar)

We have had buy to let’s ( in personal name unfortunately) for a number of years but with all the tax break removal feel we would like to continue to invest but in holiday let’s.

Would anyone have any advice ?

Ideally the plan is to gain a long term self funding business.

Thanks

Phib

[anonymous-user]

Assuming you want to keep the businesses separate, set up a new Ltd Co and loan money to it from the existing Ltd Co.

[phib]

Actually I would like to keep them the same so one can find the other if that’s possible ?

[Eric Mc]

Is your current trading limited company VAT registered?

[phib]

Yes has been for 18 years

[Eric Mc]

That would mean your Holiday Let income would have to be subject to VAT. Would that be OK with you?

[Eric Mc]

If you have a separate limited company and it's trading is not connected in any way with any other VAT registered businesses you may already have, then the new separate limited company should be able to operate without having to register for VAT unless, of course, its turnover exceeds the compulsory turnover registration threshold (£85,000).

[phib]

Eric Mc said:

That would mean your Holiday Let income would have to be subject to VAT. Would that be OK with you?

Our holiday let business will turnover more that £85k anyway I suspect, so don’t think I would have a choice

Phib

[Eric Mc]

phib said:

Our holiday let business will turnover more that £85k anyway I suspect, so don’t think I would have a choice

Phib

Far enough. I just wanted you to be sure that you were aware of VAT implications.