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Where Taxpayers and Advisers Meet

Factory Purchase

Tom7000
Posts: 68
Joined: Wed Aug 06, 2008 3:30 pm

Factory Purchase

Postby Tom7000 » Mon Sep 10, 2018 4:15 pm

Existing Holding company ( no trade) with trading subsidiary is going to buy the factory building across the road to expand. They are going to take a little bit of it thats surplus ( say 20%) and convert it into 16 flats. They will hire the flats to the employees and third parties etc.

Director said should we buy it

a. in the holding company
b. in the trading subsidiary
c. Set up a new company to buy it

Perhaps they said perhaps one day we will sell the trading business and just keep the flats as passive income.
Now I can spend a week explaining VAT, stamp duty, CT and CGT and how they all interact on the various scenarios.

But without going into detail do we have a gut feeling on the way to do it, so on balance taxes are minimised. If you must you can give your main tax that impacts.

Thanks

curious of farnborough

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