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Buying pemises?
An owner-managed business (incorporated with two equal shareholder-directors) wishes to buy the freehold from which the business operates. A loan will be required. In order to avoid putting the property at risk in the event of the trading company failing in future, what would be an efficient way to hold the property (assuming a pension scheme is not an option)? Could own personally but that would mean entrepreneurs relief would be lost (as rent would need to be charged to fund loan / interest payments). Could hold through a new holding company - which I think would secure entrepreneurs relief and 100% business property relief, in principle? But, if not all sold, etc at once and the property is retained when the trading company disposed of then any capital gain would lie in holding company, so no entrepreneurs relief would be available? Could I suppose just set up a new company owned by the individuals, charge market rent and accept no entrepreneurs relief / business property relief? Any ideas / other suggestions would be appreciated.
Re: Buying pemises?
To protect the business premises (or rather the equity therein, assuming that they do not deteriorate unduly) against business and management failure, could your wife obtain the mortgage and be the owner?
