Title to Property - some pointers.

If you are contemplating buying a commercial or residential property the following are some useful pointers:-

In the case of a married couple who are purchasing a property it is tax efficient for the purchase to be put in the name of the spouse who has a lower total income to make best use of tax allowances and lower rates of income tax. Anyone engaged in self employment or other activities which involve financial risk should seriously think about having the title to their family home held in the other spouses name. If this happens and the business fails, then the family home ought not to be put at risk. The exception to this is where the transfer takes place in contemplation of an insolvency where the situation is not straightforward and professional advice should be taken. Participants in limited companies who are both Directors and Shareholders have some flexibility in arranging title to heritable properties. A Director Shareholder can own the property and rent to the limited company. This means that the Director Shareholder can charge rent and receive an income from the company without a charge to National Insurance rising. The possible downside would be the loss of retirement relief for capital gains tax which might be available if the property was held in the name of the company. If you have any queries in relation to buying or selling a commercial or residential property please contact Morinne Macdonald who will be able to provide further information.