House as company asset.

[Whorty]

I am currently using my Ltd (IT contractor), with two directors (me & wife). We are fortunate to be soon inheriting some cash. Does it make sense to 'gift' the cash to my Ltd company account, and then use that cash to buy a house (clean purchase, no mortgage) as a company asset - The company classification is software development. This (company owned) house could then function as the registered company office and also where we live. We could even pay our Ltd. a nominal rent to live there ? - Would the house count as a tax deductible expense (effectively zeroing the company's tax liability for that year) ? would the house class as a benefit in kind ? ( even if we pay the company a rent, effectively recycling salary back to the company ) ? - Its an idea I'm playing with, maybe I need to ask my accountant but there seem some very knowledgeable people here....

Sounds like a great idea. Give it a go and let us know how it goes

[Lance]

It's is generally reckoned to be a bad idea. You might save some tax initially. But when the company sells the house it will have to pay capital gains tax on any increase in its value. And then when you dividend the cash out to yourself you'll pay dividend tax as well.

What planet are you on?

How does ‘gifting’ cash you’ve already paid tax on to your LTD. have any tax saving at all anywhere?

It’s your sockie isn’t it?

[AtW]

Yeah, sorry all it’s mu first try please feel free to permban it, I’ll try better next time...

[northernladuk]

Stupidest of stupid ideas.
This is gricer or baldrick.

Even they weren't this moronic.

[GhostofTarbera]

It's is generally reckoned to be a bad idea. You might save some tax initially. But when the company sells the house it will have to pay capital gains tax on any increase in its value. And then when you dividend the cash out to yourself you'll pay dividend tax as well.

I thought you were deed?


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[Old Greg]

I am currently using my Ltd (IT contractor), with two directors (me & wife). We are fortunate to be soon inheriting some cash. Does it make sense to 'gift' the cash to my Ltd company account, and then use that cash to buy a house (clean purchase, no mortgage) as a company asset - The company classification is software development. This (company owned) house could then function as the registered company office and also where we live. We could even pay our Ltd. a nominal rent to live there ? - Would the house count as a tax deductible expense (effectively zeroing the company's tax liability for that year) ? would the house class as a benefit in kind ? ( even if we pay the company a rent, effectively recycling salary back to the company ) ? - Its an idea I'm playing with, maybe I need to ask my accountant but there seem some very knowledgeable people here....

Is it electric, diesel, petrol or hybrid? Is it classified as a van? Are you inside IR35?

[courtg9000]

do you like being investigated by HMRC? Or this your way of giving your accountant his crimbo giggle when you ask him the question? Do you even have an accountant?

[fullyautomatix]

Honestly! And then some wonder why HMRC are always targeting these husband+wife ltd company contractors. In fact I don’t even thInk you are an IT contractor considering how hare brained you are.

[GJABS]

It's is generally reckoned to be a bad idea. You might save some tax initially. But when the company sells the house it will have to pay capital gains tax on any increase in its value. And then when you dividend the cash out to yourself you'll pay dividend tax as well.

[GhostofTarbera]

Are you Boris Johnston?

Best sockie idea ever


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[Lance]

Stupidest of stupid ideas.
This is gricer or baldrick.

[clearedforlanding]

t there seem some very knowledgeable people here....

You might as well have written "I am a sockie".

[MeIsMark]

I am currently using my Ltd (IT contractor), with two directors (me & wife). We are fortunate to be soon inheriting some cash. Does it make sense to 'gift' the cash to my Ltd company account, and then use that cash to buy a house (clean purchase, no mortgage) as a company asset - The company classification is software development. This (company owned) house could then function as the registered company office and also where we live. We could even pay our Ltd. a nominal rent to live there ? - Would the house count as a tax deductible expense (effectively zeroing the company's tax liability for that year) ? would the house class as a benefit in kind ? ( even if we pay the company a rent, effectively recycling salary back to the company ) ? - Its an idea I'm playing with, maybe I need to ask my accountant but there seem some very knowledgeable people here....