Purchase of Property through Limited Company Proposal

[PeterSellers]

I currently work as an IT contractor and was thinking about buying property throught my limited company. I read the other post and understand the double tax issue (when the property is sold) but I see some benefits of buying property this way assuming there is no plan to sell the properties.

I'm wondering is my logic below flawed? Who would be the best person to get advice on this?

Benifits I see:
1. I could build a larger portfolio faster as I would be using profits taxed at 12% instead of income at 42% to purchase the properties.

2. I could avoid inheritance tax by passing the company on to my children (i.e. making them directors) instead of the properties.

3. I would be adding a new channel for the company to earn money thereby spreading risk.

4. The company would have assets and would be worth more.

 

[murphaph]

1. I could build a larger portfolio faster as I would be using profits taxed at 12% instead of income at 42% to purchase the properties.

Having read the other thread and not being an expert myself, it seems there are more tax efficient ways of removing money from a company for property purchases than simple income taxed at top rate.

2. I could avoid inheritance tax by passing the company on to my children (i.e. making them directors) instead of the properties.

I'd be interested in anybody's thoughts on this aspect too.

3. I would be adding a new channel for the company to earn money thereby spreading risk.

It's also another avenue to lose money though!

4. The company would have assets and would be worth more.

It would also have added liabilities unless you are making so much you can pay cash.

 

[mathepac]

...
Benifits I see:
...
2. I could avoid inheritance tax by passing the company on to my children (i.e. making them directors) instead of the properties.
...

I don't know about the rest of the points you make, but making them directors may not achieve much unless you make a decision as to where your (presumably majority) share-holding in the company goes.

You would need to consult the M and AoA to confirm voting and succession rights, etc.