B
Bim
New Member
I’m in the process of obtaining planning permission for a property within the current boundary of my home. Having searched the internet I am still at a bit at loss as to what to do next and would appreciate any advice, or where to go to get it.
If planning is granted, I can sell that land tax free, as my current home’s land area is just under half an acre. There would be an adverse impact on my current home in terms of value. While the tax free piece is great, if I account for the depreciation that will impact my current home, and the mortgage early repayment fee*, it’s not going to provide a return that will make a real dent in my mortgage.
If it is advantageous I’d like to create a company in joint names (my wife and I) and ‘sell’ the plot to that business. That business would not be able to pay for the land until the building is sold. Will I lose right for a tax free payment for the plot from that company if I approach it in this way? Can I also offset the depreciation of my home to that business?
We have a small amount of money to loan the business in the first instance, though will also be looking to obtain a loan to build the property. I would like to build up the company slowly to then roll onto another project in the future.
* It looks like Santander is not going to permit splitting the current title, so we need to change mortgage providers. That will incur a painful early repayment fee. Can that be offset to the business as well?
We are both in full time employment and would like to benefit in the future and in retirement from any potential growth. Not even started looking into the tax implications of that as yet.
Any comments or advices gratefully received.
With regards
Bim
If planning is granted, I can sell that land tax free, as my current home’s land area is just under half an acre. There would be an adverse impact on my current home in terms of value. While the tax free piece is great, if I account for the depreciation that will impact my current home, and the mortgage early repayment fee*, it’s not going to provide a return that will make a real dent in my mortgage.
If it is advantageous I’d like to create a company in joint names (my wife and I) and ‘sell’ the plot to that business. That business would not be able to pay for the land until the building is sold. Will I lose right for a tax free payment for the plot from that company if I approach it in this way? Can I also offset the depreciation of my home to that business?
We have a small amount of money to loan the business in the first instance, though will also be looking to obtain a loan to build the property. I would like to build up the company slowly to then roll onto another project in the future.
* It looks like Santander is not going to permit splitting the current title, so we need to change mortgage providers. That will incur a painful early repayment fee. Can that be offset to the business as well?
We are both in full time employment and would like to benefit in the future and in retirement from any potential growth. Not even started looking into the tax implications of that as yet.
Any comments or advices gratefully received.
With regards
Bim
