UK Company money / business change of type

[Pedrota]

Hi, a few years ago I set up a limited company which provided consultancy services. I have since moved into employment. I still have money in the business account and wonder if I can change the business type to property development and use the money saved up to buy land / fund property development as a new business venture? Any advice much appreciated. Kind regards Pedro

 

[Accountants4business]

Hi Pedrota,

There's a lot to consider here when considering business or personal tax planning and making sure that the option you choose matches your long term goals.

In response to the question though - you could consider doing this however in the current cliamte Banks are not lending to many companies.

There are also many issues that would need to be overcome such as changing the activity of the business, VAT status etc...

You may be better served considering Entrepreneurs relief (Capital Gain tax rules and a 10% max tax charge) and extracting the retained profit to use to buy the properties in your name.

Hope that helps

Regards

David
accountants4smallbusiness

 

[j.harris]

The perfect answer above if you ask me