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Tax implications of using company funds as a vehicle to buy a new home.
We have a client who is looking to purchase a new home for about £800 000. He has considerable wealth (more than £5m) but does not wish to tie up his personal liquid capital in property. However he is a business owner with plenty of cash in the company account.
Another adviser has proposed that rather than put his current home on the market and wait indefinitely for it to sell before he can buy the new one our client should sell this residence to the business. This would enable capital to be raised immediately from the company account to finance the purchase of the new home which will then be his new main residence.
His current home would then become a company asset whereby he would pay rent to the company while he lived in it until he moved into the new home when it...
