Art nouveau

My client is thinking of undertaking a new venture as her current employment is coming to an end in the near future.

As well as her job she has her own consultancy business and she has a larger than usual tax liability in 2009/10 arising from a dividend from this company – a net dividend of £42 000 taxable at the higher rate. Income in 2010/11 will be lower.

My client is now considering the purchase of a neighbouring property which is available for approximately £50 000. The plan is that this will be renovated (at an unknown cost) and the client will then run a new business in it.

This would comprise an art gallery with studio and office with various sources of income including classes for children possible sales on a commission basis and refreshments for visitors.

The client is wondering whether...