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| BUSINESS PROPERTY PURCHASE |
We will investigate the optimum purchase structure which could include setting up a company or partnership, utilising a pension structure or own name purchase. Issues to consider would include keeping the ownership of a freehold property outside the trading company as it could insulate it from trading problems. The use of a pension scheme to purchase the property has significant benefits that may include tax relief and CGT exemption on the sale proceeds.
Where a pension scheme purchase is not appropriate we will advise on CGT mitigation through “Business Asset Taper Relief” and opportunities to “roll-over” the gain into a replacement property so no tax is payable until this property is sold.The Pre-Budget report in October 2007 has indicated that Taper Relief will be withdrawn for disposals after 5th April 2008, so CGT planning on business property will become even more important.
We will assist you mitigate Income Tax on rents by structuring borrowings to ensure the maximum possible interest payable is available for tax relief against the rent.
VAT is a major concern when purchasing a business property. If the property is registered for VAT, then we can structure the ownership so that it should be possible to recover VAT on its purchase. |
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