Disposal / Conversion of Company buildings
Discussion
I wonder whether any fellow PistonHeaders could offer advise or opinion on a current situation.
My Ltd Company currently occupies an old school building in a rural area, on a major A road between a large town and city. IMHO it is ripe for conversion/development either as residential or commercial use. The Company owns the property/site outright and has done for a number of years, I am MD and 75% shareholder (25% other family member). We currently carry out all our manufacturing (injection moulding/assembly) at the site which could be relocated locally or elsewhere should the business be sold.
There have been no planning applications made in the last 25 years, nor have there been any valuations!
How would or have you approach(ed) similar situations to maximise return and minimise tax?
My Ltd Company currently occupies an old school building in a rural area, on a major A road between a large town and city. IMHO it is ripe for conversion/development either as residential or commercial use. The Company owns the property/site outright and has done for a number of years, I am MD and 75% shareholder (25% other family member). We currently carry out all our manufacturing (injection moulding/assembly) at the site which could be relocated locally or elsewhere should the business be sold.
There have been no planning applications made in the last 25 years, nor have there been any valuations!
How would or have you approach(ed) similar situations to maximise return and minimise tax?
As I have no previous experience in Property, other than buying and selling my own houses, I think it best to sell the property rather than planning on developing myself. My main concerns are with how to best to handle the proceeds from disposal of the asset through the business and subsequent distribution to shareholders.
Are there any benefits in selling the site whilst the business continues to trade, i.e. relocation, as opposed to closing the business and selling.
Are there any benefits in selling the site whilst the business continues to trade, i.e. relocation, as opposed to closing the business and selling.
There are special CGT rules fort the sale of business assets as opposed to investment assets. However, the rules have changed markedly since 5 April 2008 and I am not fully up to speed on their impact on limited company disposals. Essentially, the company would be liable to Capital Gains Tax as and when the property was sold.
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