Buying Commercial Property

[moorland72]

we are looking to buy a new commercial property and looking for quick advice.

property is around £55k

* why is buying it with cash bad?

* whats the best way to buy it?

* what tax / payments would be payable upon purchase and sale

spoke to accountant and he recommends a sipp, just wondering if easier less complicated way.

 

[PaulThompson]

You could take a commercial mortgage out against it but the size means that the costs are going to be pretty high against the amount you borrow.


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[David Griffiths]

we are looking to buy a new commercial property and looking for quick advice.

property is around £55k

* why is buying it with cash bad?

It isn't. There might be reasons why borrowing is the better option, depending on your other circumstances

* whats the best way to buy it?

You'd have to give a lot more information for anybody to provide a meaningful answer to that question

* what tax / payments would be payable upon purchase and sale

No stamp duty on purchase as that price level. There might or might not be VAT on purchase depending on whether the vendor has opted to tax,

You might have to pay capital gains tax on sale, or corporation tax on a chargeable gain.

spoke to accountant and he recommends a sipp, just wondering if easier less complicated way.

Of course there is an easier, less complicated way. It just might not be the best option, but nobody can tell you that.

It's not the most expensive property in the world but relying on uninformed advice from a forum is probably not the best way to make a decision

 

[PaulThompson]

Very true David - good advice!


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[moorland72]

thanks for info, just looking for some extra info/advise,

of course final decision would be based on sound professional advice.

 

[lesvatadvice]

Glad someone mentioned VAT. This is a significant additional cost if not planned for. Depending on the use to which the building is put, it may be recovered.

 

[PaulThompson]

it's normally possible to borrow the VAT if it's going to be recoverable


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