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Where Taxpayers and Advisers Meet

Tax on Freehold Company

sakka44
Posts:1
Joined:Thu Oct 27, 2016 10:12 am
Tax on Freehold Company

Postby sakka44 » Thu Oct 27, 2016 10:16 am

Hello,

I live in a flat whereby a company owns the freehold to all the flats in the building. The residents have been offered the opportunity to buy the freehold, which would take the form of the residents forming a limited company to own the freehold. As I am paying ground rent as an individual, and would be receiving ground rent income as a company dividend, am I in effect still paying a portion of the ground rent via corporation tax and income tax on the dividend?

Thank you

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Tax on Freehold Company

Postby pawncob » Thu Oct 27, 2016 11:57 am

Yes.
Get the freehold company to reduce the G.R to a peppercorn.
The management company shouldn't make a profit and shouldn't pay C.T.
With a pinch of salt take what I say, but don't exceed your RDA

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Tax on Freehold Company

Postby maths » Fri Oct 28, 2016 7:02 pm



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