View Full Version : live / work property

20th May 2013, 12:53
anyone know anything about live / work properties for contractors?

In London most seem to be in East London in converted warehouses?
Makes sense for a contractor with money in the bank account does it not.... If you got a good account balance, maybe even a way to escape a mortgage.
Can you use your business account for this purpose?
I know the property would belong to the company and not the contractor, but if they are living in it .... same difference.

20th May 2013, 13:14
There would of course be a huge chunk of benefit in kind to pay I assume.

EIM11300 - Accommodation provided by reason of employment: table of contents (http://www.hmrc.gov.uk/manuals/eimanual/eim11300.htm)

20th May 2013, 14:59
Indeed. There would also be issues with the company owning the property if you wanted to close down the company - you'd have to sell the property back to yourself at market value, incurring legal fees and stamp duty in the process. If you sold at an undervalue there would be benefit in kind implications.

If you sold the property whilst it was owned by the company you'd have to pay CT on any profit, whereas it could have been tax free if it was your own personal private residence.