UK Landlord Forum / Life

General Category => Finance => Topic started by: raiden on February 21, 2022, 07:39:58 PM

Title: Buying a garage through the business or personal money
Post by: raiden on February 21, 2022, 07:39:58 PM
Buying a garage for storage and my wife wants to buy it through her business as they made a lot of profit last year and the accountant is saying she's going to have a massive tax bill. We need some extra storage anyway and found the perfect garage. Accountant is saying it's better to use our own money and that the business can't really buy it and he's not giving me a real answer why? Maybe in about 10 years or so will sell it but I can't see the issue?
Title: Re: Buying a garage through the business or personal money
Post by: Simon Pambin on February 22, 2022, 05:22:54 PM
Your accountant is correct. If the business did buy it then it'd just be a capital asset and won't reduce the taxable profit. It's essentially the same as if you bought a buy to let: you couldn't set the purchase cost of the property against income.

Would it be wholly for business storage?
Title: Re: Buying a garage through the business or personal money
Post by: raiden on February 24, 2022, 07:27:45 AM
No would be storing an old car in there as well
Title: Re: Buying a garage through the business or personal money
Post by: Simon Pambin on February 24, 2022, 11:16:59 AM
That being the case, there's definitely no reason to put it through the business.