wildeoscar
Registered User
- Messages
- 8
I don't think you can do that - why would the company charge itself rent on a property it owns? Wouldn't that be rental (non-trading) income for the company and be taxed at a higher rate than trading income?Why don't you do what every one else does. Buy the thing out of company funds and charge the company rent.
So, ignore most tax rules? Happy days!Buy it through company, so its a company fixed asset.
Depreciate it at say 20% so in 5 yrs its worth zero (net book value of 0% of what company paid for it).
Then dispose of the asset to your self for the NBV amnt of zero.
Interesting. It has been suggested to me by multiple individuals (none of whom are tax experts!) that buying through the company, depreciating the asset over 8 years is a common practice for purchasing a garden room.@jim
It basically all ignores correct tax treatment.
Sale of a company asset to a director? Company would make a profit between NBV & market value, paying corporation tax. Director pays tax if they receive a benefit for free.
Add to that, company can't build on land it doesn't own.
And I'm ignoring VAT aspects here. And the fact you can't write off an asset over 5 years
Is it a permanent type building, or a barna shed?depreciating the asset over 8 years
I'm considering two types:Is it a permanent type building, or a barna shed?
Really?I dont see the issue with depreciating at 20%.
Comply with rules? Like transferring to a 3rd party?..If its done right though and is compliant with tax rules and saves you money happy days
Really?
So, accelerated capital allowances?
Comply with rules? Like transferring to a 3rd party?..
Thanks for your input Brendan!Hi Oscar
I think it's better to keep your tax affairs as clean and simple as possible.
Don't mix up your personal affairs with your business affairs for comparatively small items.
If you buy a premises for your company, by all means do a bit of tax planning.
But for a garden shed, it's not a good idea. When you have a Revenue Audit , you want everything to be as clean as possible.
Brendan
Ah, I see. My mistake for staying on topic.whereas I’m pretty sure you’re talking, at all times, about what actually matters,
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