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Funding

Many of our clients have preferred to purchase their units at Apollo Park by using their SIPPs as the purchase vehicle.

This is the most tax-efficient way in which to purchase your unit and the figures below show the benefits from doing this as opposed to leaving the funds in your business and paying corporation tax in the normal manner.

With the tax rebate at 40% for higher-rate taxpayers, effectively George Osbourne is helping to fund your office with a 40% government contribution – worth taking advantage of while you still can!

Even greater savings than above if the purchaser is a 50% taxpayer

Apollo unit cost £180,000 + costs say £185,000

1. Company purchase
Company Profits per annum 50000
Corporation Tax at 21% -10500
Net funds in company to invest in property 39500
Time to purchase 4.7 years
Future Capital gains tax rate 21%

2. Director's personal purchase
Company Profits per annum 50000
Corporation Tax at 21% -10500
Dividend to director (more tax efficient than salary because of Nat Insurance) 39500
Higher rate tax payable (25%) -9875
29625
Time to purchase 6.3 years
Future Capital gains tax rate 18%

3. Self Invested Personal Pension (SIPP)
Company Profits per annum 50000
Pension contribution -50000
Corporation Tax at 0% 0
Net funds in company  0
Funds in SIPP 50000
   
Time to purchase 3.7 years
Future Capital gains tax rate 0%
Future tax free sum available to be drawn 25% of fund

Please note that financing costs will follow the same pattern as above.