Setting up commercial lease Accounting & Tax

Hi,

I’m a UK-based landlord seeking advice from a qualified accountant regarding the tax treatment and optimal structuring of a property I personally own.

I am about to grant a commercial lease to a childcare company (5-year term with an option to renew for a further 5 years).

I would appreciate guidance on:

- Whether it is preferable to retain the property in my personal name or consider a company structure

- The tax treatment of rental income under different ownership structures

- The practical implications of involving a company in the lease structure while retaining personal ownership, including whether arrangements such as peppercorn rent have any relevance from a tax or compliance perspective

- The appropriate approach to structuring, reporting, and accounting for rental income going forward

- Treatment of allowable expenses, particularly in relation to recent renovation work

I’m also open to establishing an ongoing advisory relationship where appropriate.