Building a unit, pay for it with personal or company money

[scrwright]

Land is personally owned all ready, planning in process. Say build cost is £20k +vat, limited company. What is the better option, fund direct from business funds or take dividend, build the unit myself and rent back to the company. Have discussed with my accountant and there are pro's & cons to both ways of doing it. No plans to sell unit in the future, as said land is personally owned, seperate from the Ltd Co.

Steering toward the dividend payment then renting it back to the Ltd Co, as it would be income that wouldn't get the new dividend tax (although will be personal tax on it).

What are peoples thoughts?

Ta

[The Moose]

Would the option of lending the money to your SIPP to buy both the land and build the unit work for you?

[HoHoHo]

I own 3 buildings on an acre site (1 has a tenant which is billed through my company and the other two my company rent from me).

I can't advise which route to take however having refurbished 3 buildings over the last few years I'm interested in the type and size of building you're hoping to build for £20k!

On one of my small buildings I had a potential bill of many thousand pounds simply for the fire retardant walls Building Control insisted I used. I managed to source a cheaper alternative however I've found refurbing to a good standard costs a few quid and to do it so everything still looks good and works 5 years down the line has a cost.

I have planning for an additional 10m x 5m building on the site and the budget for that was waaaaay more than £20k.