Jennifer Adams considers some important tax benefits of investing in commercial property.
Whether to buy commercial or residential property depends on various factors, not least the more beneficial tax system for commercial lets and whether an individual or a company is purchasing the property. The government wishes to encourage commercial lets and therefore permits a more generous tax regime than residential lettings.
To HMRC, a commercial property is a non-residential building where someone works rather than lives. The most common types of commercial property are shops and offices, but broadly similar rules apply to such businesses as the retail and hospitality sectors, dentists, veterinary surgeries, sports centres, warehouses, factories, garages, schools, hospitals, and agricultural farms.
Possibly the most significant tax advantage for commercial property investment by an individual is the attraction of
