Iain, thank you for your prompt reply.
If I were you, I would form a LTD company and register the property in the company name.
As you are all higher rate tax payers, all income and gain would be charged at higher rate if you show it as individuals. IT 40%, CGT 28%
As company all income and capital gains are taxed at Corporation tax rate ..small profits up to £300k are taxed at 20%.
Your question - can we consider the money we used to buy the offices to be an expense and therefore deductible against future income drawing? If not, what would be the most tax efficient way to own them?
The monies used to buy the offices is capital introduced and repayment of capital is not an expense. You will be taxed on profits made by the venture/operation and not your drawings.
You could draw profits in the form of dividends on a need basis as and when you require cash in addition to repayment of loans.
Dividends would attract additional tax as you are higher rate taxpayers.
I hope this is helpful and answers your question.
If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.