Limited Company, accounts and taxation assistance please.

Repairs, maintenance etc

There are none, tennant(s) have full insuring/reparing leases.

Dave. (remove underscore "_" to reply.

Yes, and Insurance, Finance Charges (including mortgage interest if any), Staff costs for admin

That looks distinctly like a "behind bars" type of thing.

David Grey posted

You could, but the tax people have thought of that one. They know all the tricks.

Have you remortgaged? If you get an 85 per cent mortgage on the houses you can set the whole of the interest cost off against income tax. Also you effectively pay no CGT when you dispose of it.

Another cost you may not have considered is depreciation. Houses depreciate even when they are being properly maintained.

Exactly, but the taxman, vatman doesn't need to know this - give them a copy of cough 'amended' lease showing you need to spend a fortune on painting, cleaning, repairing

Not under SSAP 19 there isn't. In any case, depreciation isn't an allowable expense for tax purposes.

But that's behind bars stuff ...

"Big Les Wade" wrote

Well, more 'slap hands' stuff.

Which raises a good point, just how keen are the Revenue and Customs lot to actually respond to a tip off?

I know a guy who got some first class undisputable evidence of vat and tax evasion and reported it, giving full invitation to come and inspect the evidence and is still waiting 2 months later (or at least he was 2 weeks ago)...

Do they?

So how come they ended up selling all their tax offices and VAT offices worth billions under a PFI initiative to a company, based in a tax haven, that's not paid a penny in stamp duty and won?t pay a penny in UK tax on its rental income, from the Inland Revenue and Customs and Excise, for the next one hundred years?

Also, how come they knowingly did this?

No, deliberate tax evasion to any significant extent tends to be behind bars stuff.

It is certainly criminal record and large fine, if not imprisonment.

Landlord insures, tenant must reimburse costs. There's no mortgage and if we did mortgage we can't get the money out without paying tax on the "loan" to the directors.

Ok, thanks for the reply.

It's commercial property.

So how do I get the loan funds out of the Ltd Co without raising a tax liability?

Cheers.

That sounds like fun, can I do that?

You don't. It's not merely a tax liability issue, it's illegal to make loans to directors (if sizeable or long term).

The only point in taking a loan would be if there were a genuine business reason for doing so. You might, for example, want to expand. Either doing more of the same (buy more property to rent out) or something completely different (e.g. start up a bicycle shop).

Besides, never let tax issues be an over-riding motivation for fundamental business decisions. You might get tax relief on the loan interest, but you do have to pay the interest, so there's still a net cost associated with taking a loan, the tax relief merely reduces the cost a little. You still need a proper incentive for incurring that cost in the first place.

Didn't the labour party put their offices into a package to sell in this way?

Rubbish , companies can make loans to any one or any entity they like .

It just needs to be recorded within the company accounts and any tax liability paid

There are none, tennant(s) have full insuring/reparing leases.

Dave. (remove underscore "_" to reply.

Yes but you may have back up cover, and you may certainly want to make provision (e.g. via a sinking fund) for refurbishment, renewal and advertising etc. when any lease expires.

Perhaps you should try looking up the term "director's loan".

There are very strict rules regarding how much companies are allowed to loan to their directors, and for how long.