UK Tax

UK Tax Questions? Ask a UK Tax Advisor for answers ASAP

Ask an Expert,
Get an Answer ASAP!

UK Tax
This answer was rated:

I own a commercial building in a bad state of repair that I

I own a commercial building...

I own a commercial building in a bad state of repair that I wish to sell to my ltd company and cover the costs of making it into an office for my company. What are the personal and company tax implications of this?


 


The building cost me 20k and the repairs are going to cost me 11k.

Show More
Show Less
Ask Your Own UK Tax Question
Answered in 27 minutes by:
10/30/2013
bigduckontax
bigduckontax, Accountant
Category: UK Tax
Satisfied Customers: 4,330
Experience: FCCA FCMA CGMA ACIS
Verified
Hello, I'm Keith and happy to help you with your question.

Selling the building to the company, presumably at the current market price, could make you liable to Capital Gains Tax (CGT) on the difference between the price you paid for it and the price at which you sold. If by some off chance the building was also your sole or main domestic residence, albeit unlikely, it might escape CGT completely! There is an allowance of GBP 10,600 or 10,900 depending on the year of sale which can offset CGT. Any sum over this amount would attract a CGT assessment.

The cost of the building to the company is the purchase of a fixed asset and attracts only a capital allowance at a very low rate. The conversion and refurbishment could attract Business Premises Renovation Capital Allowances of 100%, effectively reducing the company's liability to Corporation Tax (CT).

However HMRC advise that:

Renovating business premises

Capital expenditure on the renovation of business premises in certain ‘disadvantaged areas' may qualify for the Business Premises Renovation Allowance (BPRA). The BPRA scheme took effect from 11 April 2007. The scheme was originally due to end on 10 April 2012 but has been extended to 31 March/ 5 April 2017 It covers expenditure on the conversion or renovation of unused business premises that brings them back into business use.

Should BPRA not be available then the refurbishment costs could be charged against the profit and loss account, again reducing liability to CT.
Ask Your Own UK Tax Question
Customer reply replied 4 years ago

So....if I sell the unit to the business at the same price as I paid for it and refurbish it to make it a useful office unit I could reduce my personal tax and company profit for the year? Is it worth doing? It is the only premises I own at the moment, I have sold my house. My business can afford to buy the unit outright. Can you give me very basic figures? Building sale price 20k, refurbishment 11k. What are the basic implications on my personal tax from ltd company? I am hitting 40% tax hard (37k bill this year)

It wouldn't affect your personal tax at all! You could make a capital gain of the 10600/10900 without CGT liability. The only way your company impinges on your personal tax is when it pays dividends (taxed at 10%) which push you into higher tax brackets in which you already are. In this case the dividends are grossed up to your highest rates, hence don't distribute until your income falls. To reduce your personal income tax liability dump moneys in a pension fund.
bigduckontax
bigduckontax, Accountant
Category: UK Tax
Satisfied Customers: 4,330
Experience: FCCA FCMA CGMA ACIS
Verified
bigduckontax and 87 other UK Tax Specialists are ready to help you
Ask your own question now
Thank you for your support.
Ask Your Own UK Tax Question
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax
bigduckontax, Accountant
Category: UK Tax
Satisfied Customers: 4,330
4,330 Satisfied Customers
Experience: FCCA FCMA CGMA ACIS

bigduckontax is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Sam

Sam

Accountant

6,508 satisfied customers

26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax

bigduckontax

bigduckontax

Accountant

4,330 satisfied customers

FCCA FCMA CGMA ACIS

TEAP007

TEAP007

Tax Preparer

759 satisfied customers

Fully Trained Inspector of Taxes / District Inspector/ Team Leader/ Offshore Consultant/ 41 years

Andrew Baker(baktax)

Andrew Baker(baktax)

Personal Tax Adviser

756 satisfied customers

35+ years experience in income tax, CGT, non-residence

berduchwal

berduchwal

Accountant

669 satisfied customers

Qualified accountant and bookkeeper running my own practice since 2008.

Clare

Clare

Solicitor

147 satisfied customers

25 years exeperience as a high street solcitor

Mrs-Tax

Mrs-Tax

Tax Adviser

59 satisfied customers

Law Degree, 19 years in UK Tax.

< Previous | Next >

Related UK Tax Questions
My father and step mother are both in separate care homes.
My father and step mother are both in separate care homes. They jointly own a house. My father has a state and occupational pension both of which are considered as sole his income by the local authori… read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,059 satisfied customers
I don't have a social security question. I have a micro
I don't have a social security question. I have a micro entity account question. … read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,059 satisfied customers
I have been sent a letter from the tax - it seems my
I have been sent a letter from the tax - it seems my accountant has declared more subbies working for me than actually did, despite the fact that I sent off my subbies tax deductions every month after… read more
Sam
Sam
Accountant
Higher Officer HMRC
6,508 satisfied customers
We have a holiday home in France which we have had for 23
We have a holiday home in France which we have had for 23 years and wish to sell. I need to know which costs for renovating it are allowable against capital gains tax.… read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,059 satisfied customers
I am a UK resident for tax purposes since 2012. I plan to
I am a UK resident for tax purposes since 2012. I plan to transfer to my 25 year old son who is a UK tax resident, this year a plot of land in my country of birth which i bought 23 years for the equiv… read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,059 satisfied customers
We are a us based company. We have a question about vat.
Hello. We are a us based company. We have a question about vat.Essentially we connect a client in the UK with a client who could be anywhere in the world.We handle the payments.We take money from the … read more
bigduckontax
bigduckontax
Accountant
4,330 satisfied customers
This is a question for a Verified UK tax professional only I
This is a question for a Verified UK tax professional onlyI am a British national and an Australian resident for tax purposes since March 2016 (I have not been outside Australia since then and have a … read more
bigduckontax
bigduckontax
Accountant
4,330 satisfied customers
I am serving in Army. I was advised by HM Customes to use a
I am serving in Army. I was advised by HM Customes to use a UK414 to register my tax free vehicle when I bought it over from Germany, the same person is now telling me 1 1/2 years later that I have to… read more
TEAP007
TEAP007
Tax Preparer
Fully Trained Inspector of Taxes B1
759 satisfied customers
I get tax credits but have inherited money following the
i get tax credits but have inherited money following the death of my mum. Do i have to advise tax credits of this. Have given some money to other family and paid off debts. Not a lot left but not sure… read more
Sam
Sam
Accountant
Higher Officer HMRC
6,508 satisfied customers
I am receiveing money from abroad, do i have to pay for Non
i am receiveing money from abroad, do i have to pay for Non Residential Tax Clearance Certificate? … read more
Clare
Clare
Solicitor
Bachelor's Degree
147 satisfied customers
I used to live in Ireland 4 years ago and set up my TIN
Hello, I used to live in Ireland 4 years ago and set up my TIN because I do world-wise freelance, however I've been consistently moving countries because I like to travel and wasn't aware on how to do… read more
bigduckontax
bigduckontax
Accountant
4,330 satisfied customers
I'm trying to submit abbreviated company accounts for my
I'm trying to submit abbreviated company accounts for my Cricket Club to companies house and not an accountant! Keeps coming up with the message "Current period: Members' funds must be equal to the to… read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,059 satisfied customers
I bought a property in 1997 for £120K i moved out in 2004
i bought a property in 1997 for £120K i moved out in 2004 and started renting it out. so it wasnt my main residential address from 2004 onwards. I am looking to sell property prices seem to be about £… read more
Julie Kingham
Julie Kingham
Director
Chartered Tax Adviser
733 satisfied customers
My 2016-17 tax statement from Funding Circle is here (
My 2016-17 tax statement from Funding Circle is here (https://i.imgur.com/WvhqXTI.jpg). Funding Circle's guidance on tax is here (https://support.fundingcircle.com/hc/en-us/articles/214636966). The in… read more
bigduckontax
bigduckontax
Accountant
4,330 satisfied customers
May I ask a question about shares and the Companies House
May I ask a question about shares and the Companies House filing of accounts? … read more
bigduckontax
bigduckontax
Accountant
4,330 satisfied customers
I am trying to help my husband do his tax return he is a
i am trying to help my husband do his tax return he is a limied compan registered under the cis … read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,059 satisfied customers
A Limited Company registered in the UK owns a property in
A Limited Company registered in the UK owns a property in London UK which it Rents out for profit.A second Company registered in Cyprus is the trustee for this Company. My question is which Company ha… read more
bigduckontax
bigduckontax
Accountant
4,330 satisfied customers
In 2012 I was employed by an English company although
In 2012 I was employed by an English company although resident in Spain. I earned 10,000 pounds plus I have an English government pension 13000 pounds on all of this I paid 4000 pounds tax in the UK. … read more
bigduckontax
bigduckontax
Accountant
4,330 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x