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Where Taxpayers and Advisers Meet

Group structure to buy property

JediJay
Posts:1
Joined:Tue Oct 25, 2022 11:28 am
Group structure to buy property

Postby JediJay » Tue Oct 25, 2022 11:34 am

Hello there,
I am trying to work out if a holding company structure will be more tax effecient to puchase property.

Say I have a group structure :
J_Holding Company and two subsidiaries
J2_Consulting (Trading Company) and
J3_Property (Investment Company)

Question:
Can profits from J_Consulting be moved to J_Property or J_Holding to purchase property without triggering corp tax on the profits from J_Consulting?

Thanks!

APL
Posts:1
Joined:Tue Aug 15, 2017 10:55 am

Re: Group structure to buy property

Postby APL » Wed Oct 26, 2022 3:38 pm

Companies will generally always pay tax on the profits that they generate. Inter company dividends are not taxable though. Watch out for how you account for WIP versus fixed assets as if moving property around a group that can cause tax liabilities.


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