Commercial property

nicd1981nicd1981 Well-KnownLiverpoolPosts: 244AAT Licensed Accountant
A current client has asked me a few questions in regards to his purchase of commercial property .

"Cost 270k XXX to pay £100k approx
Rent from unit 20k per annum
Is the 100k a cost ie reduce profit on the year end?
Can this be a pension fund contribution?
Is the profit form rent (approx £7k per annum ) taxable?
Is there a level of profit in a company (similar to personal tax) where a company wouldn’t pay tax until the profit was above this level ie £10k profit so anything less than this no tax and anything above would be taxed?
Just looking at best / most tax efficient way of buying and running it"

I've informed him I'm not a tax advisor , and told him the extent of my knowledge but wanted to do my own research for experience.

His current limited company will be borrowing 100k to a new limited co , then this company will be renting the unit to another company .

Any thoughts on pension fund contribution ?
Nicola Donnelly ,MAAT, MIP, CIMA Dip MA

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