Company rental income & directors remuneration

D

DB74

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Company A has trading income & rental income. What portion of directors remuneration can be treated as relating to the rental income? From years ago I'm pretty sure it's 10% but can't find anything on it on the web.
 
I think it's what portion of their time do they spend dealing with the properties subject to a 10% / 15% limit.

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Thanks Joe. The company couldn't really be considered an investment company though so does the 10% rule still stand? TBH you couldn't realistically argue that the directors spend much time on the management on the rental of one property / tenant
 
I'd be saying none of it would be allowable against Case V, and a pretty strong case would have to be presented to convince me otherwise i.e. direct evidence of the level of management involved in generating the rental income.

If you have a look at manual 4.8.3 it contains the 10% concession that Revenue apply to "Investment companies" which have rental income - but this doesn't mean it would apply automatically to a trading company. The presumption there would have to be that the director's duties are primarily in directing the trade of the company.
 
mandelbrot said:
I'd be saying none of it would be allowable against Case V, and a pretty strong case would have to be presented to convince me otherwise i.e. direct evidence of the level of management involved in generating the rental income.
Click to expand...

+1

In the majority of cases, a letting by a trading company shouldn't involve much management input by the company directors/management.
 
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