Can I buy my main home via my limited company? Can I buy my main home via my limited company? - Page 2
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  1. #11

    More fingers than teeth

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    You'd be amazed what pleasures you can buy with your Limited company's funds.
    “We've always defined ourselves by the ability to overcome the impossible. And we count these moments. These moments when we dare to aim higher, to break barriers, to reach for the stars, to make the unknown known. We count these moments as our proudest achievements. But we lost all that. Or perhaps we've just forgotten that we are still pioneers. And we've barely begun. And that our greatest accomplishments cannot be behind us, because our destiny lies above us.”

  2. #12

    Contractor Among Contractors

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    1) You'd need a limited company mortgage, which tend to be higher than private mortgages.
    2) You want to rent it to yourself? A commercial mortgage wont do as it isn't an office or a shop, a limited company can't get a residential mortgage (because a limited company can't live in a house) so it would need a buy to let mortgage. Buy to let mortgages are more expensive than residential mortgages, and Limited company BTL is more expensive than private BTL mortgages. And I would imagine there would be a clause in said mortgage preventing the limited company from renting it to connected persons, e.g. shareholders and directors. So this is a long way of saying you almost certainly wouldn't get a mortgage, but if you did it would be at a high interest rate.
    2a) Oh, and most Limited Company BTL lenders will want a Special Purpose Vehicle rather than your IT Contracting limited company.
    3) So you overcame the mortgage problem. Don't forget now that Stamp Duty will be 3% higher.
    4) OK, so you paid the extra stamp duty. HMRC will want you to pay the going rate of rental for your property in your area. So don't be thinking about discount rents. Any difference between the discount rent you're paying and the going rate would be assessed as a BIK.
    5) So you're paying the going rate of rent. That is, give or take, about the same as a mortgage payment. So to make that rent payment, you'll need to take the same level of dividend as you would if you'd have bought the house yourself. Either that, or you pay Income Tax and Class whatever NICs on the BIK.
    6) And think that your limited company will sell the house to you at below market value? Think again. The taxman will work out what you've done and assess the tax as if it was sold to you at full market rate. Oh, and you'll be paying stamp duty on such a transfer.


    I reckon the taxman would LOVE you to do this, because a) you'll pay more tax and b) you'll be an easy target - the low hanging fruit and c) you'd need lots of lube. If you do something which is purely to gain a tax advantage, then Hector will come and get you. And living in a house your company owns will stick out like a sore thumb.

  3. #13

    Fingers like lightning

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    Of course you can - just remember to keep a copy of your receipt and file it under 'Accommodation & Subsistence'

  4. #14

    Prof Cunning @ Oxford Uni

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    Quote Originally Posted by radish2008 View Post
    Of course you can - just remember to keep a copy of your receipt and file it under 'Accommodation & Subsistence'
    ...and you can only live in it for 2 years. After that IR35 kicks in. (My accountant googled that one for me)
    Strong and Stable Moderation

  5. #15

    Lord of Ruin

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    Quote Originally Posted by cojak View Post
    I actually moved it there.

    Then changed my mind and returned it here.

    Hi cojac, still pushing boundaries I see


    I have a property you can buy. I can't shift it and my accountant advised me not to buy it into my LTD.
    Confusion is a natural state of being

  6. #16

    Faqqed Off

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    Quote Originally Posted by Diver View Post
    Hi cojac, still pushing boundaries I see


    I have a property you can buy. I can't shift it and my accountant advised me not to buy it into my LTD.
    Good Lord of Ruin, he's alive!

    And cojak
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  7. #17

    Lord of Ruin

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    Quote Originally Posted by TheFaQQer View Post
    Good Lord of Ruin, he's alive!

    And cojak
    AAaaargh!

    Sorry cojak. I have several people shouting in my head at the moment as I'm on a very very long and important conference call
    Confusion is a natural state of being

  8. #18

    Some things in Moderation

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    Quote Originally Posted by Diver View Post
    AAaaargh!

    Sorry cojak. I have several people shouting in my head at the moment as I'm on a very very long and important conference call
    No need to apologise Dear - I'm just happy to see that you're still alive (with a full complement of fingers, I hope?).


  9. #19

    Lord of Ruin

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    Quote Originally Posted by cojak View Post
    No need to apologise Dear - I'm just happy to see that you're still alive (with a full complement of fingers, I hope?).

    Still 9 1/2
    Confusion is a natural state of being

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