Taking large amount out of my business account

[DaveB]

I was thinking something along these lines, but the money stays in the company, and even more of it than there was as I would expect the OP would be obliged to pay a fair price for the shell.
It would likely cost less tax in the long the long run to take dividends to solve the current situation, and more dividends to renovate (after April) than to pay CT as well as dividend tax if the company buys and renovates.

As a private sale the co. can pay whatever is agreed with the seller, but in order to remove the associated debt, presumably the mortgage on the property, then the selling price would need to equal the outstanding balance on the mortgage.

If the co. buys and renovates and sells on at a profit there would be no dividend tax to pay other than what is taken from the co. in the normal course of events. If no extra cash is taken out then there is no extra divi tax to pay.

[Lance]

As a private sale the co. can pay whatever is agreed with the seller,

IANAL but I am pretty sure you cannot divert company funds like this without it being fraud. Otherwise my company would buy my shed for £200k.

[ASB]

IANAL but I am pretty sure you cannot divert company funds like this without it being fraud. Otherwise my company would buy my shed for £200k.

It needs to be justifiable - if challenged.

In the case of a wrecked property it may be quite wide.

[Lance]

It needs to be justifiable - if challenged.

It's a very nice shed.

[pr1]

It's a very nice shed.

if an independent property valuation expert agrees with your £200k "very nice shed" then you're good to go

[LondonManc]

As usual this is another thread where the question appears simple but really it's far from it and then we get drip fed the facts. Surely the answer here is to sit down with your accountant, put the entire scenario on the table and then get some proper advice on your complex situation.

+1

Sounds like OP doesn't want to tell the accountant everything either. Was the arson a stock-taking incident, or some other dubious reason?

[Platypus]

Bankruptcy is a piece of cake. Save yourself a shedload and get her to go bust. It'll be a lot less painless than HMRC chasing you for a load of unpaid tax which could in turn bankrupt you.

EDIT: it'll wreck her credit rating, but so what?