Can I use my company to buy property from me?

[futures]

I have a property that is in negative equity; I also have a company that has accumulated profits. If I use my company to buy the property from me at the price I paid (above current market value) is there a BIK or other liability?

 

[Nige]

If the company pays more that the market value, the excess will be treated as dividend income in your hands. In addition, there will be company law issues.

 

[futures]

OK thanks - I thought as much - so liquidating and offsetting the Capital Losses and Gains would be the way to go?

 

[Nige]

Unless you sell the property, you won't crystallise the loss and so cannot use it against your gains.

As the property is in negative equity, you'll need bank approval to sell.

Is the company currently trading? If so, what will you do with that trade if you liquidate the company?

 

[futures]

Unless you sell the property, you won't crystallise the loss and so cannot use it against your gains.

As the property is in negative equity, you'll need bank approval to sell.

Is the company currently trading? If so, what will you do with that trade if you liquidate the company?

I realise I'd need to crystalise the loss and it'll be a while before the mortgage is reduced enough (good tracker so i'm lucky that way...) - I'm just planning (far) ahead.

I could go back to working as a sole trader or more likely I'd move abroad. I know there are issues with restarting the "same" business too soon.