(Sport) debentures as a company investment/asset?

[Pondlife]

From wiki http://en.wikipedia.org/wiki/Debenture_(sport)

In sport, a debenture is defined as a certificate of agreement of loans which is given under the company's stamp and carries an undertaking that the debenture holder will get a fixed return (fixed on the basis of interest rates) and the principal amount whenever the debenture matures. The terms may also include ancillary benefits such as an option to buy tickets at a favourable price, as well as or instead of interest. The term stems from the financial concept of a debenture.

Given that the debenture has an agreed surrender value and is something that can be sold/transferred/traded etc. Is this something I could buy as a company asset/investment?

The access to guaranteed tickets is something that would attract no BIK as you still have to pay for them?

Thoughts?

[TheFaQQer]

WDYAS?

Nluk

[Pondlife]

WDYAS?

Nluk

I want to check that the idea won't be met with total derision before wasting their time. On here. For free.

[Pondlife]

I've risked the ridicule and asked him.

Thoughts from others appreciated in the meantime.

[Jeebo72]

My mates business, which is a genuine one (ie more than 50 employees) has a few. All genuine business expenses. Used to entertain clients etc. So, a reasonable expense.

[Pondlife]

My mates business, which is a genuine one (ie more than 50 employees) has a few. All genuine business expenses. Used to entertain clients etc. So, a reasonable expense.

It's not the provision of the tickets and any BIK. It's the My Co owning the debenture itself as it has a value and can be resold.

I'm happy to buy the tickets this would give dibs on myself. Although if this can be classed as entertainment without BIK then so much the better.

[Jeebo72]

It's not the provision of the tickets and any BIK. It's the My Co owning the debenture itself as it has a value and can be resold.

I'm happy to buy the tickets this would give dibs on myself. Although if this can be classed as entertainment without BIK then so much the better.

My mates the accountant (director). The company own the debentures. Simple. It's an asset like any other. Worth only what's paid for it until sold for gain or loss.

If you want one, go and get it. Easy to justify, especially if you use it to entertain clients. MyFriendLtd etc.

Your justification only needs to be "an investment" and / or entertainment. You can invest in anything with your business money. Anything. The scope of your business may change tho'.

If you invest in a Ferrari that's fine. If you store it away and look after it. If you invest in Ferrari and drive it to work each day, then you're going to find the tax man take a dim view unless you have genuine reasons.

Don't worry about what any permiecontractors say or any "accountants" that are essentially junior account managers for contractor only accountants. ie when I was with one, I couldn't invest in commercial property etc More to do with it being more hassle for them than anything.

It's your business, run it how you see fit, within the rules set out by HMRC.

[Pondlife]

Accountant says it's fine for MyCo to buy the debentures. Only BIK is if MyCo is clearly gifting the tickets, which it won't be.

So the only question is whether the money I'll most likely spend on the transaction is worth the free dinners for being the only chap in town with tickets.

Time to try and find a bargain pair.

[NickNick]

Been a while since I looked but they come with an expiry date don't they? And the costs is a reflection of that, i.e. the closer to the date, the cheaper they are?
I guess it's just a depreciating investment?

[JRCT]

Used to entertain clients etc. So, a reasonable expense.

Your choice of sports team to watch will dictate whether or not you can put it through as 'entertainment'. Loftus Road would be questionable.