Can I buy and company rent from myself?

[johhnysalad]

Aside from the possible bad timing (top of market?), could I buy a flat near my gig, then use the company to rent it from me on a market rent?

[xoggoth]

Could be wrong, may be some obscure rule, but can't think of an obvious reason why not.

If a reasonable amount of rent is paid why does it matter if you or someone else is landlord? If you did overpay and thereby reduced your company profit for tax, the extra rent you pay yourself is taxable anyway surely, so can't see it can be seen as any means of tax avoidance.

[TheFaQQer]

Don't see why not - just make sure you declare your rental income as income, as you would anyway.

[dude69]

Aside from the possible bad timing (top of market?), could I buy a flat near my gig, then use the company to rent it from me on a market rent?

Your company has no use for a flat. You would have to pay income tax on the benefit-in-kind obtained through occupying the flat.

[johhnysalad]

Your company has no use for a flat. You would have to pay income tax on the benefit-in-kind obtained through occupying the flat.

Eh? Company doesn't own flat, I would, as "landlord". The company would then rent on a commercial arrangement from the "landlord", then I as the "renter" would occupy.

I can't see how a BIK arises?

[Keldin]

And who is going to live in the flat?
If you are living in the flat then you are an employee of the company being provided with accomodation and it will be taxed as a BIK.

If the company is going to rent it from you then it must remain unoccupied or be used as a business and not have anyone living there.


K

[TheFaQQer]

Eh? Company doesn't own flat, I would, as "landlord". The company would then rent on a commercial arrangement from the "landlord", then I as the "renter" would occupy.

I can't see how a BIK arises?

I see no BIK arising from the ownership of the flat. You may need to declare the expenses claimed by an employee staying their and then get relief on your personal tax return, but I can't see there being a BIK here.

IANAA, YMMV etc.

[TheFaQQer]

And who is going to live in the flat?
If you are living in the flat then you are an employee of the company being provided with accomodation and it will be taxed as a BIK.

If the company is going to rent it from you then it must remain unoccupied or be used as a business and not have anyone living there.


K

I think (from other posts) that the OP is planning on buying somewhere personally, renting it to the company, for an employee to stay there while working away from home, which would be a business expense.

The money paid would need to be declared on a P11D, but relief can then be claimed back so there is a 0 tax bill on it.

[Hiram King Of Tyre]

I was looking at the idea of my partner buying a caravan and renting it to the business at market rate. The accountant advises against it though. Something to do with "connected persons"

[Bluebird]

won't you have to declare the income that you get from rental and therefore pay income tax on it ?