tax, VAT implications of buying properties thru LTD company

[pupster]

Hi,

I am a company director in an AV company (along with 1 other director) We have built up money after having a great 2013.

We now wish to buy a couple of student "pods" for around £40k each on a new development. no mortgage will be needed.

Where do we stand in regards to TAX VAT and other various things ?

We are VAT registered and have no overheads, loans etc, and a steady stream of work coming in.

How is the best way to go about this without paying silly money back to the govenment ?

[section 44]

This will likely be a VAT exempt business so that VAT incurred cannot be recovered.

[pupster]

This will likely be a VAT exempt business so that VAT incurred cannot be recovered.

what would happen with the corporation tax ? would the puchase of the properties offset this ? Sorry about this i'm rubbish at the taxation side of things

[bd6759]

No. The properties are a capital expense and cannot be deducted.

[section 44]

... in calculating income profits