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JGM
JGM, Solicitor
Category: Law
Satisfied Customers: 11153
Experience:  30 years as a practising solicitor.
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I own a limited company which is a successful training business.

Resolved Question:

I own a limited company which is a successful training business. I want to use some of the profits to buy a one bedroom flat in Central London. What is the best way to set this up? I am considering having my training business lend funds to a new limited company, which will then obtain a 75% interest only mortgage to buy the property. I want to use the new property as an office for the training company. It will have phone and broadband but no-one will work there full time. It will be used for occasional staff visits and client meetings but not let out. Will this be accepted by the Revenue or is there a risk I might be taxed for personal benefit? Should the training company pay the new company rent to cover the mortgage and the costs of furnishings and equipment? Can these be bought by the training company to claim back VAT? The new company will not be registered for VAT but the training company is.
Submitted: 1 year ago.
Category: Law
Expert:  JGM replied 1 year ago.
Will you or anyone else be living there?
Customer: replied 1 year ago.
no
Expert:  JGM replied 1 year ago.
In that case there is no risk that you would be taxed on this as a personal benefit. It's not used or owned by you and is owned and used for companies.
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