Dream Property

After giving the situation some careful thought we decided the best approach was to use a directors loan account as the rate of S455 tax would have been lower than the marginal rate of tax incurred on dividends and it is also reclaimable upon repayment of the loan. We are now able to structure the repayments in a way that suits the needs of the client.

There was also the task of being able to raise enough finance on the property in order to be able to purchase it. This was achieved by the client providing a sizeable deposit and the prospect of the property generating rental income from the commercial element.

We also had to consider an added complication that the commercial element had previously been opted to tax and so we provided advice to the client on what this meant and then helped them with opting to tax the land and registering for VAT so that they could reclaim the VAT charged upon purchase.

Whilst the client approached our business advisory service team initially with regards to this matter we were able to call upon a vast wealth of knowledge and experience within Ward Goodman in order to help the client achieve their dream. Our tax experts were able to provide advice on the implications of VAT, the of renting the commercial element to connected parties and the extracting of the cash deposit. Our in house financial advisers were able to make enquiries into the financing element of the deal and support this process.

This case study shows how Ward Goodman can use the wide range of financial services it offers can help a client achieve their dream. We are able to call on years of experience under one roof, not only does this enable us to provide you with the advice you need and ensure that the experience is a smooth and efficient process but it also means that the whole team is operating on the same page and everyone understands your goals.