Can my Ltd co. pay for conservatory in my house.

[css_jay99]

ahh i dont even know what i am trying to ask.

I need a conservatory, and i need an office space.
I dont have money, my Ltd company does

Is it possible to use ltd company money to build conservatory in my house. My dividends are already maxed out

cheers css_jay99

[DaveB]

IANAA

In theory at least, if you work out the propotion of time it will be used as an office rather than a conservatory for you and the family then your ltd. can contribute that proportion of the cost.

You would probably be able to justify that in the event of HMRC pokeing thier noses in. No way on earth you would be able to get the full cost.

Another route would be to take a directors loan for the amount needed, assuming it is less than £5000, and pay it back in installments. Privided you cleared the loan within 9 months of your ltd's year end there should be no problems. Probably safer and easier than the first option.

[b0redom]

No.

Well technically it is probably possible, but the IR will look very dimly on it, and you'll be expected to pay tax on the gains from the company when you sell the house.

What do you mean maxed out dividends?

[BrilloPad]

But doesn'y your company then own a proprtion of the house? So at sale time you have to pay CGT?

[DaveB]

You *could* do it so that the ltd is actually taking out a lease, paid in advance, on the conservatory. Probably causes all sorts of issued with your mortgage provider re. subletting etc.

If you are that desperate the Directors Loan is probably the only way to do it without causing grief down the line, assuming you manage to pay it back.

[Coalman]

IANAA

I have been advised by my accountant that it would not be good for the company to pay for the build (sell on issues as BP states).

The company can pay for refurbishment, i.e. cabling, furniture, etc as this can all be removed when you sell the house.

I am waiting on detials on the issue of charging my company rent for the home office (how does this effect personal tax, etc.).

HTH.

Coalman

[TheFaQQer]

But doesn'y your company then own a proprtion of the house? So at sale time you have to pay CGT?

Yes - so probably not worth it.

Plus you may also lay yourself open to paying business rates as well.

[Sockpuppet]

What do you mean maxed out dividends?

Guessing he's hit the higher rate bracket.

[MPwannadecentincome]

why worry about CGT - Capital GAINS Tax - which way are house prices heading? Just make sure when you sell it is difficult to work out the gains and if there is a bit of gain then the tax to pay is reduced over time so it may not be such a big bill after all?

[css_jay99]

Guessing he's hit the higher rate bracket.

Yes definately have. used div to pay for 2.5yr old X5 last year.

will be taking £5k out before end of tax year to fund kitchen & bathroom refurbishments.

i honestly don know why i bother, i'm probably in negative equity by now

I guess the conservatory will have to wait.

I wonder how difficult it is to build 1 myself i.e foundation and brick work?. any one attempted it?

css_jay99