Property business - tax breaks

[thebullettrain]

The partner has formed a limited company and is:

1) looking to loan money to the company to buy the property - so the company buys it cash but owes the director the loan. Can the loan payment be offset as a business cost before profits?

2) looking to make a mini empire and buy more property /
- so is looking to buy a car. If she buys a car, can she deduct the cost against profits. I think this is capital allowance so can get a 100% write off for an electric car or something else over a few years for a normal car: thoughts?

3) if so this leaves very little in the business in the first few years so how does that actually work?

[Si1295]

1/ Interest charged, yes. Capital repayment, no.

[MaxFromage]

thebullettrain said:

The partner has formed a limited company and is:

1) looking to loan money to the company to buy the property - so the company buys it cash but owes the director the loan. Can the loan payment be offset as a business cost before profits?

2) looking to make a mini empire and buy more property /
- so is looking to buy a car. If she buys a car, can she deduct the cost against profits. I think this is capital allowance so can get a 100% write off for an electric car or something else over a few years for a normal car: thoughts?

3) if so this leaves very little in the business in the first few years so how does that actually work?

2- depends on a number of factors. Type of car, age, profits in co etc etc.

3- Cashflow is key not tax breaks. Focus on that.

Get a good accountant and ask these questions now, not before the property is bought.

[MustangGT]

Max is correct, as usual. You/your partner needs proper advice before doing anything. Now is not a particularly good time to be getting into domestic property. Also private ownership vs company ownership is a very complicated discussion and will vary case by case.

a lot of private landlords are getting out of the business, there is a reason for that....