Implications of change in business structure for AHA tenancy

[early riser]

Currently farm in partnership with my father as joint tenants on a successive 1986 AHA tenancy. Father is looking at coming out of the partnership and so for tax purposes I am looking at moving to Limited company status.

Before I sit down and discuss this with my landlord, what are the likely implications for my tenancy agreement?

Other (less preferred) option would be to remain a partnership and bring my wife in as a partner.

Thoughts appreciated, thanks

 

[Nearly]

Landlord will NEVER accept ltd co as tenant. Could last forever.
Continue with assets (cows) owned by partnership and trade as ltd co.
Partnership to pay rent and ltd co reimburse or pay hire charge for cows to cover it.
Safety net in place and assets still yours.

 

[Lazy Sod]

It's none of your landlord's business how you trade, as long as you or your father pay the rent.

 

[Billboy1]

#nearly I think is correct

 

[Surgery]

i would tread careful trying this if you get on well with your LL , any agent will see straight through what the implications would mean to his client.

 

[Durry cows]

What are the actual benefits of trading as Ltd over the partnership? Barring not being liable etc

 

[early riser]

What are the actual benefits of trading as Ltd over the partnership? Barring not being liable etc

Paying corporation tax rather than higher rate income tax

 

[teslacoils]

Dad out. Wife in. Set up ltd on the side to provide services to partnership to remove excess profits.

 

[Nearly]

Paying corporation tax rather than higher rate income tax

another tax allowance and another name on planning applications etc.

 

[ISCO]

Landlord will NEVER accept ltd co as tenant. Could last forever.
Continue with assets (cows) owned by partnership and trade as ltd co.
Partnership to pay rent and ltd co reimburse or pay hire charge for cows to cover it.
Safety net in place and assets still yours.

This is correct
Limited company will never be accepted as tenant

 

[Lazy Sod]

The OP is currently the tenant. As long as he pays the rent, what's the problem?

 

[Cows 'n grass]

We changed from a partnership to a ltd company with no issues. I have no succession rights because dad's tenancy was just single life but the tenancy was always in his name and not the partnerships. Its still just in his name but the limited company pay the rent. We never even mentioned it to our landlords and they have never said anything to us but it's pretty obvious because the limited name is on the bank account.

 

[Cows 'n grass]

What are the actual benefits of trading as Ltd over the partnership? Barring not being liable etc

Flat rate 19% tax on profits then most income is drawn as a dividend paying 7.5%.

 

[Billboy1]

We changed from a partnership to a ltd company with no issues. I have no succession rights because dad's tenancy was just single life but the tenancy was always in his name and not the partnerships. Its still just in his name but the limited company pay the rent. We never even mentioned it to our landlords and they have never said anything to us but it's pretty obvious because the limited name is on the bank account.

They won’t be bothered if there’s no succession rights , they’d be flapping if there was !

 

[Suffolk Serf]

We changed from a partnership to a ltd company with no issues. I have no succession rights because dad's tenancy was just single life but the tenancy was always in his name and not the partnerships. Its still just in his name but the limited company pay the rent. We never even mentioned it to our landlords and they have never said anything to us but it's pretty obvious because the limited name is on the bank account.

Someone I know paid their rent from a Ltd company bank account and got the tenancy transferred from his father to a company tenancy.
This peed off the landlord so much (his agents mistake) that the other tenants were ruled by a rod of iron.
Roll on a few years and the tenant wasn’t so clever, the Ltd company went bust and the landowner has the land back.

 

[B'o'B]

Just because you trade as a limited co it would still be your name on the tenancy. We trade as a company but the tenancy is in mine and dads name, it only becomes a problem when it is the company name on the tenancy.

 

[Cows 'n grass]

Just because you trade as a limited co it would still be your name on the tenancy. We trade as a company but the tenancy is in mine and dads name, it only becomes a problem when it is the company name on the tenancy.

Same here

 

[Breckland Boy]

Someone I know paid their rent from a Ltd company bank account and got the tenancy transferred from his father to a company tenancy.
This peed off the landlord so much (his agents mistake) that the other tenants were ruled by a rod of iron.
Roll on a few years and the tenant wasn’t so clever, the Ltd company went bust and the landowner has the land back.

Sounds just like a tennant and landlord I know!!

 

[multi power]

It's none of your landlord's business how you trade, as long as you or your father pay the rent.

Not correct

 

[multi power]

What are the actual benefits of trading as Ltd over the partnership? Barring not being liable etc

Fudge all