What is the best way to minimise tax paid on this investment?

N.I.M

Hi,

hoping for some advice. We are looking to buy a property to do up as an investment. The property is for sale at £180,000 (hoping to get it a bit cheaper), and we would need an additional £58,000 to do the work. My dad has offered to invest the full amount to enable us to get the project moving. However he lives in Ireland and we live in England, so we would need to bring the money into the country, and apparently could be liable to loose 40% of it in capital gains tax, making the project completely unviable.

Someone has suggested we might be better setting up as a limited company, so any advice on this would be greatly appreciated.

Also, would it make any difference if we paid it back as a loan, ie in monthly installments, or in lump sums over time?

Thanks for reading, eagerly awaiting any answers!

Cook_County

This is clearly a venture in the nature of trade so profits are liable to income tax. UK corporation tax rates are lower than personal tax rates at some levels of profit, is this why you want a company?

The source of financing appears to be a non-arms length loan from a foreign couuntry which adds another set of complex rules. Specialist advice is required.