Re: Office Purchase
I wouldn't even discuss it with your accountant or solicitor, as they might mislead you.
You are always better off buying a property in your own name and letting it to the business.
You are diversifying and protecting your assets. If the business gets into trouble, the creditors will not be able to claim against the property.
If you have equity in your home, you should borrow as much as possible against your home as this will be cheaper than a commercial mortgage. You will probably have to take out a commercial mortgage as well, but it will be a lot cheaper as the loan to value percentage will be a lot lower.
The main tax benefit is that you will get hit once for CGT when you sell it. If a company owns it and sell it, the company will pay CGT on the sale. And when you distribute the profits to yourself you will get hit for CGT again.
If you are selling the business at a later stage, the purchaser will almost always prefer to be buying a business rather than buying a property.
If you decide you want to give your employees some shares at a later stage, you are giving them shares in the business and not in the property.
I have seen a few properties for sale which are held in companies. The auctioneers tell you that you only have to pay 1% stamp duty, which is correct. But you have to allow for a potential or deferred liability to CGT. And you have to distribute the rental income or you will have tax complications.
Brendan