Replies to Queries — 1
Property advantages
Several of our clients have purchased commercial premises personally with a view to renting them back to their companies and benefiting from NIC-free income and business asset taper relief on a subsequent sale. Our queries are as follows.
Would a market rent have to be charged?
Replies to Queries — 1
Property advantages
Several of our clients have purchased commercial premises personally with a view to renting them back to their companies and benefiting from NIC-free income and business asset taper relief on a subsequent sale. Our queries are as follows.
Would a market rent have to be charged?
Could major improvements to the buildings be undertaken by the company with tax relief (e.g. for roof replacement) as well as VAT being claimed/reclaimed, or would these expenses have to be paid personally? (Presumably, if the terms of the lease allowed it, then the company could be responsible for internal/external repairs?)
Could leases be drawn up to avoid stamp duty land tax (e.g. short-term leases or licences)?
Readers' views on these points would be helpful to ensure matters are dealt with correctly from the outset.
(Query T16,524)
