Pay for it with the pension plan
Article Abstract:
Small companies and partnerships can purchase commercial property with money from their own pension schemes. For instance, the small self-administered scheme (SSAS) of a limited company is capable of buying the premises of the company and renting it back from the pension scheme. Partnerships, on the other hand, can only buy unused property using finance from its pension plan. Using the pension arrangement for buying commercial property is widely considered an advantageous approach to purchasing because such an investment is bound to be profitable in the long-run. Such an arrangement also allows small companies and partnerships the chance to sell their property to the pension plans, thereby enabling the value of the property to increase without having to be subjected to capital gains taxation.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1992
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Pension mortgages
Article Abstract:
Pension mortgages, which have been popular among the self-employed in the UK, are now available to workers who do not want to participate in their employers' pension plans. The 1987 British Budget and the Social Security Act 1986 both give tax-favored status to pension mortgages. Pension mortgages are similar in principle to endowment mortgages. The borrower pays only the interest on the home loan. Interest payments given tax relief. Premiums are paid under a pension plan. At the time of the borrower's retirement, the mortgage is paid out of the capital accumulated in the pension plan, which is tax-free.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1987
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Take stock of your tax burden
Article Abstract:
There are a number of uncomplicated opportunities by which individuals in Great Britain can reduce their tax bill. Investors can improve the base value of their portfolios by using the full 6,300 pounds sterling that is exempt from the Capital Gains Tax. Individuals with large estates can mitigate the effect of inheritance taxes by making lifetime gifts which are in certain cases exempt from estate taxes. It is not beneficial for married couples to elect to have the wife's income taxed separately unless the total joint income of the couple is at least 6,986 pounds sterling.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1987
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