It is usually more tax efficient for the owner/shareholders of a business to buy a business premises and rent it back to the company. The banks like it because you as owners of the building and with a big mortgage to pay, are incentivised to keep your business making moeny to pay back the mortgage, as the company is paying you rent and with that money you pay off the loan.
If you are starting from a green field site, you as landlords can build just the shell of the building and then let the company kit out the building. You now as landlords, have a building fully kitted out which the company paid for. You as landlords get the benefit of this as you do not have to pay back anything the company has paid for. So in the future if you wish to move a new tenant into the building have a nice premises at no additional cost to you as the landlord. Yes your company paid for it, but this was far more tax efficient and of much more benefit to you in your role as landlord.
Subscribe to:
Post Comments (Atom)

0 comments:
Post a Comment