Limited Company buying a property abroad

[Gaz_M]

You and your company are not the same thing!!!!!

So a company could not let somebody stay in their house abroad for free (or a nominal fee)?
I don't know the answer, it's a genuine question.

[SimonMac]

So a company could not let somebody stay in their house abroad for free (or a nominal fee)?
I don't know the answer, it's a genuine question.

The company can do what ever it wishes, the person recieving the benefit in kind will have to make sure they pay the approporate tax though

[Eirikur]

Key Facts:

If a company buys a holiday home it gets tax relief for the ongoing running costs
If made available to just one Director the benefit in kind charge is based on a full years’ use
The Director pays tax on the benefit in kind and the company pays Class 1A NIC @ 13.8%
By making it available to other employees each pays tax based only on the weeks they use it
Using company funds avoids personal tax on taking the money out to buy it personally

[tractor]

....

Key Facts:

If a company buys a holiday home it gets tax relief for the ongoing running costs
If made available to just one Director the benefit in kind charge is based on a full years’ use
The Director pays tax on the benefit in kind and the company pays Class 1A NIC @ 13.8%
By making it available to other employees each pays tax based only on the weeks they use it
Using company funds avoids personal tax on taking the money out to buy it personally

The OP needs to understand this and probably 1000 other things related to it before even thinking about this. Until then, just use a TUI company.

[BrilloPad]

Its a lot of hassle. Just get the money out of the company and buy it yourself.

I have a great scheme where you keep 99%!

[Bozwell]

Good afternoon,

I hope someone may be able to give me some advice. I am an IT Contractor and have my own limited company.

I am considering buying a property abroad. My limited company account has reasonable funds in it that I have built up over the years so my question is.... can my company buy the property abroad? The reason I would want to purchase this property is purely for family holiday use and for friends and family to use. I would not need a mortgage on the property and it would not be rented out to make any profit. Friends and family would pay a small amount to cover costs.

So is this allowed? Would HMRC be happy and allow my limited company to purchase this as an investment and what would the implications be should I decide to sell it, although I wouldn't want to be doing that to be honest any time soon.

Thanks

I looked into this before and came to conclusion that it's only really worth buying property in your Ltd if it is going to be your company's business premises. That doesn't included a house that is also the company registered address.

[The Tester]

Its a lot of hassle. Just get the money out of the company and buy it yourself.

I have a great scheme where you keep 99%!

Thanks. What is this scheme if I may ask?

[BrilloPad]

Thanks. What is this scheme if I may ask?

BrilloPadQCAssured

I will guarantee a 99% return. I have a QC opinion that it will work.

[Alan @ BroomeAffinity]

You could use an SPV to hold the property in. It's a complex and technical process but it is possible and involves creating a special share class in your trading company which the new spv would take up and then a divi could be declared to extract the funds without higher rate tax consequences. There needs to be a commercial reason for doing this otherwise HMRC might try to hammer you under GAAR. It's probably risky and might not even be feasible but it might be something you'd want to explore with your accountant. Usual caveats apply.

[eek]

BrilloPadQCAssured

I will guarantee a 99% return. I have a QC opinion that it will work.

As confirmed in the past many of us believe the QC opinion was more like but the supplier didn't bother to mention that part of the opinion in the advertising...