But Live/Work property through the LTD?

[hgllgh]

Has anyone bought (or know anyone who has bought) a Live/Work property through their LTD co?

Looking through some forums it seems there a people doing this and just living in the unit as if a normal residential property.
You seem to get a lot more space for your money too.
(Also you don't pay business rates unless the 'work' element is separate from the 'live' element with its own entrance.)

[Sockpuppet]

I'd expect there to be a lot ok BIK involved.

[Clare@InTouch]

Sockpuppet is right - generally there would be a considerable benefit in kind unless you paid commercial level rent to your company. Plus, if you wanted to sell the place you'd have to pay CT on any gain whereas it would be tax free if you'd bought it personally and it was your principle private residence.

[hgllgh]

Sockpuppet is right - generally there would be a considerable benefit in kind unless you paid commercial level rent to your company. Plus, if you wanted to sell the place you'd have to pay CT on any gain whereas it would be tax free if you'd bought it personally and it was your principle private residence.

but when would BIK be paid and what rate is it?

[northernladuk]

Has anyone bought (or know anyone who has bought) a Live/Work property through their LTD co?

Looking through some forums it seems there a people doing this and just living in the unit as if a normal residential property.
You seem to get a lot more space for your money too.
(Also you don't pay business rates unless the 'work' element is separate from the 'live' element with its own entrance.)

Which forums are these? For the 100's of times this has been asked on here the answer has been don't do it in every single one.

Understanding the basic difference between your stuff and the business stuff that has to be wholly and exclusively gives a good clue as to the answer to this let alone other aspects of tax on profits yadda yadda.

I would also expect there to be some pretty tight clauses in your mortgage/lease to stop you abusing the system but whether you want to risk that is down to personal choice.

[Clare@InTouch]

but when would BIK be paid and what rate is it?

It can be a complicated calculation for accommodation that is provided by an employer so I won't type it all out here. Have a read through here though: HM Revenue & Customs: Living accommodation - work out the value to use

The benefit would be calculated on your P11D, and the tax paid on your tax return. The company may also pay NI on the value of the benefit at 13.8%.

[hgllgh]

Which forums are these? For the 100's of times this has been asked on here the answer has been don't do it in every single one.

Understanding the basic difference between your stuff and the business stuff that has to be wholly and exclusively gives a good clue as to the answer to this let alone other aspects of tax on profits yadda yadda.

I would also expect there to be some pretty tight clauses in your mortgage/lease to stop you abusing the system but whether you want to risk that is down to personal choice.

Well not necessarily ... I would be looking at converting a sizeable warchest into a property without a mortgage. Even if there were some taxes to pay (I'm not convinced BIK applies), if I can avoid the mortgage trap in one foul swoop it has to be worth looking into?

[northernladuk]

Well not necessarily ... I would be looking at converting a sizeable warchest into a property without a mortgage. Even if there were some taxes to pay (I'm not convinced BIK applies), if I can avoid the mortgage trap in one foul swoop it has to be worth looking into?

I guess some fancy accounting methods we are not aware of could be applied but surely something with duality of purpose or personal use has to fall under BiK?

Out of interest exactly what type of property are you looking at? Maybe the type of property would make a difference to how it is taxed? You talking about a small industrial unit, shop with flat above, house with an 'office'?

I think the details are the key here.

[SueEllen]

Well not necessarily ... I would be looking at converting a sizeable warchest into a property without a mortgage. Even if there were some taxes to pay (I'm not convinced BIK applies), if I can avoid the mortgage trap in one foul swoop it has to be worth looking into?

Your not convinced BIK applies why?

You need to have somewhere to live as your main residence. So if the work/living property isn't your main residence where do you live?

[northernladuk]

Link an example of a property you are thinking about?? Am interested to see.