Inherited 25% of a commercial property - need advice.
Discussion
I'm looking for recommendations for professional advice regarding a commercial property, 25% of which I have inherited.
Obviously happy to pay for this.
Several issues to consider, including buying out other owners, selling, valuation and legal stuff (costs associated with buying or selling for example).
Anyone in the commercial property business?
Ta.
Obviously happy to pay for this.
Several issues to consider, including buying out other owners, selling, valuation and legal stuff (costs associated with buying or selling for example).
Anyone in the commercial property business?
Ta.
Lots to consider and lots to understand. A good advisor should be able to assist- if you send me a pm I can recommend mine.
It will largely depend on what you want to do and what your goals are. You may already be aware that there's a lot of merits for owning commercial property by using your pension fund. No CGT, tax on rent etc
But then you may not wish to keep it in there long enough to benefit from these or have plans to change it to residential etc etc ( you can't have any element of residential property within your pension fund)
So in short, find yourself a good advisor and provide some thought as to where you want to go with it and what you're able to do in the way of pensions and other capital to make the most of it.
I know the above probably hasn't helped much but you're not going to be able to get much of an answer as there's so many personal circumstances to factor in.
All the best of luck
Andy
It will largely depend on what you want to do and what your goals are. You may already be aware that there's a lot of merits for owning commercial property by using your pension fund. No CGT, tax on rent etc
But then you may not wish to keep it in there long enough to benefit from these or have plans to change it to residential etc etc ( you can't have any element of residential property within your pension fund)
So in short, find yourself a good advisor and provide some thought as to where you want to go with it and what you're able to do in the way of pensions and other capital to make the most of it.
I know the above probably hasn't helped much but you're not going to be able to get much of an answer as there's so many personal circumstances to factor in.
All the best of luck
Andy
Permitted development rights (PDR) ? Would it make a good resi conversion?
If you can get it into a SIPP (and I'm not sure how you would do that without switching some of your existing pension into cash in your SIPP to acquire it at OMV which would lead to personal tax implications - the SIPP pays you cash for the property, so you are personally taxed on the payment), then you can secure change of use within your pension before selling (your pension can own an asset with residential consent, but not a residential asset) and save tax on any uplift in value you then realise.
As you suggest in your OP, take some professional advice as it is not straight forward.
You'll also be liable for Business Rates on the property as well unless it is let.
If what I outlined above re SIPP is still correct (and I'm happy to be corrected, but that was my experience a few years ago), then any marginal tax advantage is easily outweighed by the utter ball ache that is dealing with commercial property acquisitions within a SIPP. Maybe others have had positive experiences, but the reality of the theory is a total PITA. Unless the SIPP route saves you £10k+ in tax then IMHO it's not worth the hassle.
If you can get it into a SIPP (and I'm not sure how you would do that without switching some of your existing pension into cash in your SIPP to acquire it at OMV which would lead to personal tax implications - the SIPP pays you cash for the property, so you are personally taxed on the payment), then you can secure change of use within your pension before selling (your pension can own an asset with residential consent, but not a residential asset) and save tax on any uplift in value you then realise.
As you suggest in your OP, take some professional advice as it is not straight forward.
You'll also be liable for Business Rates on the property as well unless it is let.
If what I outlined above re SIPP is still correct (and I'm happy to be corrected, but that was my experience a few years ago), then any marginal tax advantage is easily outweighed by the utter ball ache that is dealing with commercial property acquisitions within a SIPP. Maybe others have had positive experiences, but the reality of the theory is a total PITA. Unless the SIPP route saves you £10k+ in tax then IMHO it's not worth the hassle.
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