Buying a business which comes with a property...

[TheLordJohn]

Hi all.

We already own two houses (pre April 2016) and I am investigating the possibility of buying a running business which comes with a house.
I will, most likely, not be living in this house for at least 10/12 years, and have no intentions of letting it out.
If I can scrape some money together to purchase the ongoing concern, would I be liable for the extra 3% stamp duty on top of the 5% or whatever it is?
I understand if I don't declare it as a main residence (which it won't be) I would be liable for any capital gains in the future.

Thanks for the help, Stuart.

[Eric Mc]

TheLordJohn said:

Hi all.


I understand if I don't declare it as a main residence (which it won't be) I would be liable for any capital gains in the future.

Complete opposite I'm afraid. A person's main residence is exempt from Capital Gains Tax. Any other property they own will be taxable under Capital Gains Tax when it is eventually sold or disposed of.

How come the business comes with a premises?
Is the premises intrinsic to the business?
Can the business function without it?
Is the main reason you are purchasing the business that you actually want to buy the premises?

[Ean218]

Eric Mc said:

TheLordJohn said:

Hi all.


I understand if I don't declare it as a main residence (which it won't be) I would be liable for any capital gains in the future.

Complete opposite I'm afraid. A person's main residence is exempt from Capital Gains Tax. Any other property they own will be taxable under Capital Gains Tax when it is eventually sold or disposed of.

Eric, isn't that exactly what the OP said?

[Eric Mc]

Ean218 said:

Eric Mc said:

TheLordJohn said:

Hi all.


I understand if I don't declare it as a main residence (which it won't be) I would be liable for any capital gains in the future.

Complete opposite I'm afraid. A person's main residence is exempt from Capital Gains Tax. Any other property they own will be taxable under Capital Gains Tax when it is eventually sold or disposed of.

Eric, isn't that exactly what the OP said?

He confused me with the double negatives in the sentence.

I'd still like to know why the business comes with a residential premises. Is it a hotel or guest house - or a nursing home?

[TheLordJohn]

Hi.

Thanks for the replies.
The house is sort of a bonus (to the customers of the main business), i suppose.
The business could be run without a look around the house but at the same time, it's also a pretty important part.
Apologies for being overly vague.
Whether the main point is the fact that there's a 99% chance no one will be living there for a decade or so, I'm not sure?
The business is essentially the 'garden' or outside area of the house. (The interesting part...!)

PS - not sure what I said was a grammatical double negative. Always thought that was a 'I ain't doing nothing' sort of job.

[Eric Mc]

Well, if you buy the business, do you HAVE to buy the house?

Is the business set up as a limited company?

Is the house owned by the limited company?

If it is, does it have to be?

Very hard to say anything very specific when you aren't being very specific either.

[TheLordJohn]

Well he has both aspects of the property up for sale separately (think this has answered by question... Lol).
So the house is up for one price, including the grounds/gardens/outbuildings etc, then the Heritage Centre (business) is up for sale separately.
The current owner has the property as his main residence (because it is). If he is to sell the house separate to the business he said that he'd lease the outside of the house from the new owners to keep the business side of it going.