Buying property using funds from my Limited Company

garysharpe

Hi All,

I am interested in buying an investment property using the funds I have accumulated in my Contractor Company.

I am afraid Revenue would conduct an audit on my contractor Company if I buy the property on my Company name as they would request how I have accumulated the funds (despite all should be OK in the end).

To avoid that I plan to set up a new Company that would receive the funds from my other Company so Revenue will see a fresh company purchasing the property, not an active Company. What is your advice on this? Does it worth to do what I am doing or Revenue doesn't usually request information to the solicitor when doing the transaction.

Many thanks for the help!

Gary

duffysfarm

What does your accountant think?

Bobby1984

Specific structures need to be in place when lending from one company to another. It seems to be an unnecessary step to set up a new company if everything is on in your current one.

Have you thought about your current company contributing to your pension and buying it through that (in your own name and not in the company name)?

paul71

You need to think a lot deeper about this and get some real tax advice.

Why are you putting a property into the ownership of a company?

How do you plan on getting proceeds on the income from the property out of the Company, and what are the tax implications of that?

What is your plan when it comes time to sell the property? How do you get the proceeds of the sale out of the company, and what are the tax implications there?