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Where Taxpayers and Advisers Meet

property via ltd. co

geoffpw
Posts:3
Joined:Wed Aug 06, 2008 3:03 pm

Postby geoffpw » Sun Apr 27, 2003 7:48 am

What if any are the advantages of buying aproperty investment through a limited company?
Geoff

demetris
Posts:95
Joined:Wed Aug 06, 2008 2:18 pm

Postby demetris » Mon Apr 28, 2003 6:08 am

I am afraid there aren't many compared to buying it in your own name. Also, it depends on who the tenants will be, what the individual's income tax rate is (income recipient etc.

If the company sells the property, the arising gain will be reduced by indexation allowance.This is lower to business asset taper relief obtained to the individual as long as the property is let to an unquoted trading company or to an unincorporated business (in this case, only 25% of the gain will be atxable after two years of ownership).

As you can see, the right decision is a matter of each person's circumsatnces. You should take proper qualified advice before you do anything.

I hope this helps.
Demetris Savva BA FCCAFREE tax newsletters written in plain language on business and individual tax matters. FREE Special Report on how to save taxes, addressed to businesses and individuals, sent automatically to newsletter subscribers.


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