UUÂãÁÄÖ±²¥

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 Sales (assignments) of leases guidance note.

It is also important to consider the IHT implications of the ownership of the premises especially for BPR and details are set out in the BPR - where to hold business premises guidance note.

Individual as sole trader

On acquisition the sole trader can