This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Should I buy a commercial property investment through a company or as an individual?

tengallonhat
Posts: 1
Joined: Fri Jul 26, 2019 6:11 pm

Should I buy a commercial property investment through a company or as an individual?

Postby tengallonhat » Fri Jul 26, 2019 6:18 pm

I work full time and have income that puts me at the highest rate. I'm looking at buying a commercial (retail) property and renting it out as a long term investment. I guess the taxation aspects I care about are: 1) taxes paid in acquiring the property (VAT, Stamp Duty?); 2) taxes paid in collecting rent (VAT, income, corporate, dividend?); 3) taxes paid when I sell the property one day (cap gains?)

I'm not too worried about 3 becuase the plan would be to own this for decades and, by then, I'm sure it'll all have changed anyway, but 1) and 2) feel relevant. Is there any high level reason I should do this as an individual or through a limited company? If it is not an obvious choice, would love to hear what some of the key considerations are!

I've searched this forum and the one on company taxation and not really found the same query...

Thanks!

bd6759
Posts: 3094
Joined: Sat Feb 01, 2014 3:26 pm

Re: Should I buy a commercial property investment through a company or as an individual?

Postby bd6759 » Fri Jul 26, 2019 10:51 pm

An y question that begins "should I" don't get many responses because you are asking for personal advice. No one can tell you what you should do based on a forum post.

Given that you are looking to invest a significant sum for a long term gain, your first move should be to speak with a professional to obtain proper advice. Your post displays confusion that can't be fixed in a simple reply.

Jerome_Lane
Posts: 16
Joined: Mon Jul 22, 2019 10:13 am
Location: Camberley, Surrey
Contact:

Re: Should I buy a commercial property investment through a company or as an individual?

Postby Jerome_Lane » Mon Jul 29, 2019 9:00 am

Amongst other things, it depends if you want the income for lifestyle or to roll up profits. If roll up is something you are looking at then maybe investing through your pension will be more favourable. You should take holistic advice before making a decision. Good luck!
Jerome Lane
Tax Advisor
jerome.lane@stewartco.co.uk
Stewart&Co.
Chartered Accountants
Telephone: 01276 61203

SDLT Geek
Posts: 171
Joined: Sun Apr 30, 2017 5:45 pm

Re: Should I buy a commercial property investment through a company or as an individual?

Postby SDLT Geek » Sat Aug 03, 2019 3:23 pm

The stamp duty land tax in buying a commercial property will be the same whether you buy as an individual or through another entity.


Return to “Property Taxation”