Purchasing Property via Ltd

[GreenGrass6]

Hi there,

I was wondering if anyone knew if there were any legal / tax implications to me purchasing a house through my company and allowing my son to live in it rent free until he saved up the rest of the deposit needed to purchase the house from the company? With rental prices the way they are saving any meaningful amount whilst renting is nearly impossible.

He would be buying the house from the company at market value.

The company currently owns 2 rental properties, if that is a factor.

 

[Brendan Burgess]

You have already asked about giving your son a gift through a limited company.

Gift From Ltd Company.

Hi there, I was wondering if someone could explain the tax implications for me of gifting 100k to my son from my Ltd company. Myself and my wife are the company directors and we have no employees. My son was previously employed by the company while he was in university (if there are any...

askaboutmoney.com

You can do it, but it would cost you a lot in BIK.

Why do you own properties through a limited company?

This is another example of where it's just not a good idea. If you owned the property yourself you could let your son stay there rent-free and he would just be subject to CAT which would be nil as any benefit would be well below the CAT allowance.

So maybe you should buy the property in your own name and let him live there.

Alternatively, there is nothing to stop you, (but not the company), lending him the money to buy the house. That is the most tax-efficient way of doing it.