Company Rent in Private House

[RoryMac]

I have a company which is operating from my private residence. Is it possible for the company to pay rent to me, and could I privately claim this rent under the rent a room scheme and not be liable for tax? A friend has suggested to me that is is, but it seems unlikely

Cheers

 

[Jockey]

Hi,

The company could pay you rent however as this is your principal private residence if you sell your house in future this area of your PPR will not be exempt from CGT and you will have to pay CGT @ 20%.

In relation to the rent a room scheme your suggestion will not qualify either as this scheme is solely for private tenants.

Jockey

 

[ubiquitous]

The company could pay you rent...

Indeed, but there's usually little or no point. Rent is normally taxable just as director's salary or fees are.

 

[RoryMac]

Thanks