Property issues in the care sector – it’s never too early to plan for an exit

Posted on June 1st, by editor in Caring Times. No Comments

In last month’s article, the property ownership conundrum considered was whether to own property personally or within a limited company, but the conundrum does not stop there. If you decide to hold the freehold property in your company, you need to consider whether it should be in a single company, together with the trade, a separate stand alone company, or a “group” company (more of that later). Dealing with the easiest first, a stand alone separate company. This has far more disadvantages than advantages. One of the few real positives is that the freehold property is in a nice wrapper should you decide to sell in the future, therefore saving your purchaser some Stamp Duty Land Tax costs. In addition, you do have limited liability protection. But the disadvantages from a tax perspective are considerable. The shares in the company will not qualify for the beneficial Business Asset Taper Relief (BATR), so you will not be able to benefit from the 10 per cent effective rate of tax for a higher rate taxpaye

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