Commercial prop purchase

[cerberaperv]

I’ve found a run down commercial prop to buy and convert into a 30bed hotel. It’s in an ideal location in a city centre.

It’s held in an SPV, so am I correct in thinking that if I bought the company it’s held in, there would be no vat to pay and SDLT is only 4%?

[Deesee]

cerberaperv said:

I’ve found a run down commercial prop to buy and convert into a 30bed hotel. It’s in an ideal location in a city centre.

It’s held in an SPV, so am I correct in thinking that if I bought the company it’s held in, there would be no vat to pay and SDLT is only 4%?

You mean purchasing the shares of the SPV? If so the new shareholders/directors be taking on any liabilities of that company, you may save some stamp against purchasing the asset (you'll get the vat back when purchasing) ensure you take on some proper paid advise, legal/accounting. Lots of variables to consider here.