Can I lease my commercial property to my ltd company to save tax?
Question
I recently read about the tax benefits of purchasing a commercial property in my own name then leasing it to my Ltd Company which then rents it out to a sole trader or unlisted company at a slightly higher rent.
I have owned a commercial property for over 12 years and leased it out to 2 different retailers. Is it possible to put this new found knowledge into plan and get the leaseholders to pay their rent to my property investment Ltd Co. instead of me, then for me to invoice the company for the rent minus say 10%?
Arthur Says Yes it is possible to start putting this plan into action now. But the legal agreements must be properly drawn up. You don't need to limit yourself to 10%, you can make the margin greater than this.
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