High Clarity Accountants

TAX TIP OF THE WEEK – Your company has accumulated significant profits and you looking for a tax-efficient way to use them.

One possible way would be to consider purchasing a share of the freehold in the trading property. This would be a more tax-efficient method to acquire a property as opposed to extracting a dividend and then buying a property in your own name.

A further even more tax-efficient twist to this is by using the spare profits to make pension contributions and then using these funds to purchase the property.

The advantage of this method is that the company will firstly get tax relief on the contributions used to purchase the property. In addition, your company can continue paying commercial rent and getting tax relief on this.

This method would give you a triple tax boost it is a very efficient way to use company profits.

I hope this was helpful, for lots more tax tips and strategies get a copy of our 71 ways to save tax checklist https://bit.ly/2YQbhvr

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