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House purchase - cash or borrow

I'm making some decent money off my business at the moment and would like to buy a £50k ex-corner-shop that I currently rent and use 25% residential, 75% business use (workshop/offices).

Would I be better off:

1) Buying the house personally and 'renting' it to the business. 2) Buying the property through the business and renting the living accomodation back to me personally. 3) Buying the property with one limited 'property owning' company and renting it to the trading limited company.

Also, would I be better off buying it for cash, or getting a mortgage for some/most of it and using the money elsewhere.

The price of the property is unlikely to change dramatically as it is in a crap area that has little hope of changing.

Cheers

Reply to
Take a Walk
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You pay tax on the rent you receive. The business gets tax relief on the rent paid. It depends on the relative tax rates.

The business pays tax on the rent received, paid out of earnings which it has already paid tax on. Not a good idea.

Probably not a good idea. The lower rate bands for the company get divided between the two companies.

The other option is that you buy the residential part of it personally, and the business buys the business part

Probably best using your own money to buy it.

Reply to
Jonathan Bryce

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