Hi,
I run my own business: a Limited Company registered in London which has more than one trading purpose. My Ltd Company is registered at Companies House for SIC 68209 “Other letting and operating of own or leased real estate”, therefore one nature of business (or business purpose) is “operating”and letting own properties.
My Ltd Company owns a property in London which is let out to professionals.
Question No 1: I have noticed that most of the businesses treat rents either as non-trading income or other-income in the Corporation Tax accounts. Being “letting out own property” a trade purpose, shall the monthly income rent be treat as trade income?
I am thinking to get a business loan for my business to buy-to-let another property for it.
My concerns is again about Corporation Tax: buying and letting is a trade purpose of the business, therefore that would be considered as trade loan.
Question No 2: would the loan interest be considered as trade cost (against the trade income)?
Question No 3: would the loan repayments (interests apart) be considered as trade cost?
I hope you can help me to clarify these points
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