mouser
Junior Member
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April 2011
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buying art as a limited comapny, by mouser on Sept 26, 2011 22:54:35 GMT 1, Yes mouser. If you want less profit on you art assets when you sell then buy through a company. If you want to buy art that loses you money then I guess the company would be better for that too.
Not so much want to buy art that loses but we all know its a very fickle business and very much doubt anyone here has not bought a couple of pieces that are worth less now than when they bought them, its not intentional, but very common. As you said each case is different, dependant on both the circumstances and art, some want to buy a stable recognised artists that will ( probably) retain its value, whilst others will be trying to "invest in the next big thing". Your write up of the limited company set-up was bang on though, one of the best descriptions of how it works.
Yes mouser. If you want less profit on you art assets when you sell then buy through a company. If you want to buy art that loses you money then I guess the company would be better for that too. Not so much want to buy art that loses but we all know its a very fickle business and very much doubt anyone here has not bought a couple of pieces that are worth less now than when they bought them, its not intentional, but very common. As you said each case is different, dependant on both the circumstances and art, some want to buy a stable recognised artists that will ( probably) retain its value, whilst others will be trying to "invest in the next big thing". Your write up of the limited company set-up was bang on though, one of the best descriptions of how it works.
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johnnyh
Junior Member
Posts โข 4,492
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March 2011
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buying art as a limited comapny, by johnnyh on Sept 27, 2011 17:43:00 GMT 1, Couple of thing on the hubble point. Most private limited companies pay close to zero tax as they can write so much off.
What has not been mentioned here if you want to be clever is why you do not make the buying and selling of art part of your business.
You can then look at part of your house exspences as a taxable deduction as this is in effect your gallery / office.
Eg set up an online gallery very little cost. Your house becomes a warehouse to store the artwork or as mentioned a display area. A good accountant will get some of this as a tax write off plus other expenses eg your wife manages the web etc etc.
As mentioned you will end up paying low tax depending on your real business earnings which I have no idea about but either way get a good accountant if you are turning over good money with a decent GP and OP.
Just some thoughts
Johnny
Couple of thing on the hubble point. Most private limited companies pay close to zero tax as they can write so much off.
What has not been mentioned here if you want to be clever is why you do not make the buying and selling of art part of your business.
You can then look at part of your house exspences as a taxable deduction as this is in effect your gallery / office.
Eg set up an online gallery very little cost. Your house becomes a warehouse to store the artwork or as mentioned a display area. A good accountant will get some of this as a tax write off plus other expenses eg your wife manages the web etc etc.
As mentioned you will end up paying low tax depending on your real business earnings which I have no idea about but either way get a good accountant if you are turning over good money with a decent GP and OP.
Just some thoughts
Johnny
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Hubble Bubble
Junior Member
Posts โข 4,099
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December 2010
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buying art as a limited comapny, by Hubble Bubble on Sept 28, 2011 0:29:22 GMT 1, Johnny The issue with this is that when you sell your house the taxman will come calling for a cut of the profit on that portion of it which has been used as part of a limited company. So if you claim relief from using domestic premises the taxman will never forget that the premises were not entirely domestic when you sell.
(Modified addition) But looking at your post again, I'm sure a good accountant would find some mileage in your suggestions! I guess one would have to be able to demonstrate that you were engaging in the trade of art in a meaningful business way...
Johnny The issue with this is that when you sell your house the taxman will come calling for a cut of the profit on that portion of it which has been used as part of a limited company. So if you claim relief from using domestic premises the taxman will never forget that the premises were not entirely domestic when you sell.
(Modified addition) But looking at your post again, I'm sure a good accountant would find some mileage in your suggestions! I guess one would have to be able to demonstrate that you were engaging in the trade of art in a meaningful business way...
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Hubble Bubble
Junior Member
Posts โข 4,099
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December 2010
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buying art as a limited comapny, by Hubble Bubble on Sept 28, 2011 7:44:08 GMT 1, Not so much want to buy art that loses but we all know its a very fickle business and very much doubt anyone here has not bought a couple of pieces that are worth less now than when they bought them, its not intentional, but very common. As you said each case is different, dependant on both the circumstances and art, some want to buy a stable recognised artists that will ( probably) retain its value, whilst others will be trying to "invest in the next big thing".
V true mouser. Good and valid point.
Not so much want to buy art that loses but we all know its a very fickle business and very much doubt anyone here has not bought a couple of pieces that are worth less now than when they bought them, its not intentional, but very common. As you said each case is different, dependant on both the circumstances and art, some want to buy a stable recognised artists that will ( probably) retain its value, whilst others will be trying to "invest in the next big thing". V true mouser. Good and valid point.
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johnnyh
Junior Member
Posts โข 4,492
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March 2011
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buying art as a limited comapny, by johnnyh on Sept 28, 2011 10:34:54 GMT 1, Hubblebubble you are right and agree with your posts but key is if it is serious to get a good accountant. Also is this a serious business etc ( no disrespect meant). Similarly as mentioned if house as a business there can be insurance and mortgage issues etc. All hyperthetical !!!
Key important things for all companies about tax is. You do not break the tax law however you do work on making your company as tax efficient as possible.
idea being you legally pay as little tax a possible. Any body want to know how little tax you can pay should look at any UK plc annual report. There you can see their revenue figures, GO and OP plus what they paid in tax.
Cheers
Hubblebubble you are right and agree with your posts but key is if it is serious to get a good accountant. Also is this a serious business etc ( no disrespect meant). Similarly as mentioned if house as a business there can be insurance and mortgage issues etc. All hyperthetical !!!
Key important things for all companies about tax is. You do not break the tax law however you do work on making your company as tax efficient as possible.
idea being you legally pay as little tax a possible. Any body want to know how little tax you can pay should look at any UK plc annual report. There you can see their revenue figures, GO and OP plus what they paid in tax.
Cheers
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Hubble Bubble
Junior Member
Posts โข 4,099
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December 2010
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buying art as a limited comapny, by Hubble Bubble on Sept 28, 2011 15:44:37 GMT 1, ^^ We seem to be saying the same thing
My analysis was not based on my own situation (so no disrespect can be taken) merely looking at a hypothetical.
I was just responding to the thread and don't really have much of an interest in looking at the tax affairs of large companies.
Hope life in HK is good... I remember a trip there with great fondness!!!
HB
^^ We seem to be saying the same thing My analysis was not based on my own situation (so no disrespect can be taken) merely looking at a hypothetical. I was just responding to the thread and don't really have much of an interest in looking at the tax affairs of large companies. Hope life in HK is good... I remember a trip there with great fondness!!! HB
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