Ltd company buying the freehold for the premises they trade in
lisajayne1
Registered Posts: 55 Regular contributor ⭐
I have a client with new limited company trading a cafe/bistro. (trading for 12 mths)
The directors have personally paid a deposit for the future purchase of the freehold. This is currently not in the accounts, as at present unsure how they are going to proceed.
The commercial premises they use for the business will eventually be purchased by their personal pension fund - simple.
The residential flat above they have been advised to buy through the business (not by me)
If this residential property sits within the balance sheet of the "business" and all rental income goes into the business "other non trading income"
What will happen when they eventually sell the Cafe/Bistro.
Surely when potential buyers see the accounts the balance sheet will not reflect the business they are buying.
If the company owns the freehold for the residential flat, will that mean when they sell the business they will be selling the freehold flat with it?
Am I missing something here? lol be nice please.
The directors have personally paid a deposit for the future purchase of the freehold. This is currently not in the accounts, as at present unsure how they are going to proceed.
The commercial premises they use for the business will eventually be purchased by their personal pension fund - simple.
The residential flat above they have been advised to buy through the business (not by me)
If this residential property sits within the balance sheet of the "business" and all rental income goes into the business "other non trading income"
What will happen when they eventually sell the Cafe/Bistro.
Surely when potential buyers see the accounts the balance sheet will not reflect the business they are buying.
If the company owns the freehold for the residential flat, will that mean when they sell the business they will be selling the freehold flat with it?
Am I missing something here? lol be nice please.
0
Comments
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Sorry to say that I haven't received any help/comments, however I have since found out that it will be an Asset and Goodwill sale of the cafe/bistro.
I have written this for anyone else who maybe unsure of how to proceed and not heard of this method like I hadn't.0
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