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My client owns a trading company which trades from a retail premises the company owns. Over the retail premises are apartments which the shareholders personally own. As the apartments are residential accommodation a management company is in place. The shareholders were offered €20,000 in annual rent for roof space for a telecommunications mast to be erected. Legal advice insisted that the lease of this area had to be between the management company and the owners of the mast. There is no group structure between the management company and the trading company and the shareholders want to keep these separate. What is the best way to extract the €20,000 (net of first year legal fees) out of the management company into either the directors hands/to be used by the trading company. Please note the following: a. We are bookkeepers, not tax experts. Please bear this in mind when wording your reply. b. Please do not recommend a group structure. The question is looking for other options, e.g. management charge from trading company, register for payroll taxes etc. This question has been raised by: Ronan Duffy, Royal Canal FCS

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Asked on 11 January 2020 2:21 pm