Buying Flat : Private or Company purchase?

Aug 23, 2003 4 Replies
S

Hi everyone



I'm buying a 2/3 bed's flat by this year's Xmas, as a first-time buyer. Fictional budget: £100k. The flat will be my sole, long-term place of residence .



Now, I'm running my own Ltd company, I'm its sole shareholder and I work from home. Company funds will fund the purchase.



As I see it I have two options:


1 - The company buys the property and it becomes a company asset. I may or may not decide to pay rent.


2 - I pay myself enough salary + dividends to buy the property.



At least for the foreseeable future, I'd have no intention to sell it, although one never knows what lies ahead.



If I want to minimise/eliminate my tax liabilities what would be the best option to pursue?



Thanks.



ST


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T

You will get no cgt excemptions if the company buys it (and even if it's a second property where this is not a consideration the advice is usually that buying it through the company is too much aggro and not worth it- though there is a stamp duty loop-hole that a company shell can take advantage of if you are thinking of transferring it in a hurry ).

tim

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T

"Sertav" wrote

Do your Memorandum & Articles of Association allow such a transaction? (eg Objects clause?)

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M

Aaah all becomes clear now!! Thanks!

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