Personal or company ownership

By Tolley

The following Owner-Managed Businesses guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Personal or company ownership
  • General principles
  • Individual as sole trader
  • Partnerships and company structures
  • Acquisition by partnership
  • Acquisition by individual partner
  • Acquisition by own company
  • Acquisition by company director

General principles

The implications of decisions involving property go far wider than taxation. Before committing to a property acquisition, and deciding how it should be held, the whole picture should be considered, and advice taken. For instance, the owners should consider what the consequences are for finance and insurance purposes, or what the legal positions of the business owners are if there are disputes.

The tax issues on acquisition should be considered in conjunction with those likely to apply on disposal. This note does not, however, cover the tax issues on disposal of a lease. For guidance on the tax issues on disposal of a lease, see the Disposals of leases guidance note.

Individual as sole trader

On acquisition the sole trader can choose whether to:

  • purchase or lease the property (see the Lease or buy guidance note), and
  • acquire the property in his own name, or in the joint names of himself and his spouse or civil partner (see the Joint names with spouse or civil partner guidance note)

On disposal the sole trader can usually access entrepreneur’s relief or rollover relief, providing the conditions for those reliefs are met. See the Condition for entrepreneurs’ relief and Rollover reliefs guidance notes for more information.

More on Acquiring premises: