Open an ltd to buy my cars in UK

[alefhenriique]

Hello guys,

I’m on a dilema and would like some advice. I’m from Brazil but living in Spain.
Fortunately my income comes from online business and I can have a company anywhere.
It’s very well know that the UK is one of the easiest and cheapest places to run a business in Europe, and here in Spain it’s a little bit nightmare for businesses and exotics and track cars. There is a lot of restrictions what can be changed and still be road legal, and also the prices here are quite high.
So my thoughts are: open a ltd in uk and move my business to there but without becoming a resident.
Is it worth register my car in name of the company? I know that business taxes are 19%, but can i use the rest of the profit to buy the car in the company name? My plan is to built my tracktool and bring to nürburgring and sometimes Spain. If everything goes well, my future plans is to buy my first exotic car there too, so would be interesting to know what you guys have to say.
I’ve done a lot of research but my case is very specific.

Thank you in advance for the attention.

[mmm-five]

No.

Unless I'm misunderstanding and your business is hiring out exotic cars...rather than what you're implying that the company buys one for your personal use.

[syl]

mmm-five said:

No.

Unless I'm misunderstanding and your business is hiring out exotic cars...rather than what you're implying that the company buys one for your personal use.

You can do that, it's called a company car. There is this thing called BiK though.

[Eric Mc]

Benefits in Kind only apply to UK tax residents. If a person is liable to UK Income Tax, then they will pay personal tax on the use of a company car. They won't be liable if they are not UK tax residents.

However, there are lots of other flaws in the OP's scheme - and I am sure the Brazilian tax authorities will have their own tax rules on such arrangements.

[anonymous-user]

sounds like a recipe for disaster to me

[D.Joker]

Thanks for the replies.

No, it’s not for renting exotics cars. I’m soon to receive my Spanish passport. The problem is that here in Spain the taxes are too high and cars don’t have same liquidity as in the UK. Also modifications are a problem here, so I’m trying to find a solution for having a track car for touristenfahrten in Nürburgring.
My plans is to do everything legally, I just want to know if there is a penalty or if it’s common in the uk to have exotics cars in name of the business.
Since, of course I don’t want my money blocked by the government.

[D.Joker]

Also, I’m used to lhd cars and from what I’ve seen, in the UK lhd cars worth less than rhd , so this is an advantage for me.

[jammy-git]

Given your unique situation, I would be seeking professional advice, not that from a forum.

[D.Joker]

Thank you, will seek an expert.
My question was just if it is a common practice in the UK to have exotics in the name of the business like it is in Brazil. Since I’m in south of Spain, Gibraltar is an option for me too.

[bigandclever]

So you’re a Brazilian living in Spain who wants to open a British company so you can go driving in Germany to save a few quid? Should be easy

[D.Joker]

No, I currently have my business based in Spain, but with the crisis that is coming, the taxes here will be higher and other problems that might come with. So I’m looking to reallocate to a better business friendly place.
So I wanted to know if can also have my cars in England since the prices here in Spain are high and the isn't much liquidity. Just trying to figure out if it worth it. I’m not trying to do Anything illegal.

[drmike37]

Wire the money over, I’ll look after them!

[D.Joker]

drmike37 said:

Wire the money over, I’ll look after them!

Thank you, that’s very kind from you. Hahaha

[alfabeat]

I'm not sure about many aspects of this, but one consideration will be how you open a bank account for your new Ltd UK company. It may be worth speaking to some of the UK high street banks initially, to see what they think about it?

[D.Joker]

alfabeat said:

I'm not sure about many aspects of this, but one consideration will be how you open a bank account for your new Ltd UK company. It may be worth speaking to some of the UK high street banks initially, to see what they think about it?

I can open a bank account with TransferWise, that’s not much of a problem.

[Shnozz]

D.Joker said:

Also, I’m used to lhd cars and from what I’ve seen, in the UK lhd cars worth less than rhd , so this is an advantage for me.

I haven't seen much evidence of this in recent years. With £ dropping against € and with easy export, LHD cars here seem to be worth more than RHD rather than less. 20 years ago that might have been different.

I live between the UK and Spain and feel your pain in terms of prices and modifications. For a similar reason I am looking at a LHD sports car registered in the UK that gets used predominantly in Spain and repatriated annually for its MOT. Keep the everyday stuff on Spanish plates and also a semi-classic that already has a lengthy history of passing the ITV.

[Shnozz]

I am a little confused also by your plan to be honest.

Why are you needing to operate a company in the UK to buy a car there? Why not just buy a UK car personally? You will have to keep MOT and tax valid in the UK.

A Spanish insurer will cover the vehicle - if you were to use a UK insurer you are very limited to a handful of insurers that will provide more than 90 days cover outside of the UK.

[D.Joker]

Shnozz said:

I haven't seen much evidence of this in recent years. With £ dropping against € and with easy export, LHD cars here seem to be worth more than RHD rather than less. 20 years ago that might have been different.

I live between the UK and Spain and feel your pain in terms of prices and modifications. For a similar reason I am looking at a LHD sports car registered in the UK that gets used predominantly in Spain and repatriated annually for its MOT. Keep the everyday stuff on Spanish plates and also a semi-classic that already has a lengthy history of passing the ITV.

Thank you for your help. I’m glad to know that are members here at the same situation.
I’m planning to buy a 458 in the future and just saw a good lhd example be sold by Tom Hartley for 99k.
I have 4 cars here in Spain, and plan to keep it here. Just want the more expensive ones in another place. I’m not very confident with Spanish government policies.

[D.Joker]

Shnozz said:

I am a little confused also by your plan to be honest.

Why are you needing to operate a company in the UK to buy a car there? Why not just buy a UK car personally? You will have to keep MOT and tax valid in the UK.

A Spanish insurer will cover the vehicle - if you were to use a UK insurer you are very limited to a handful of insurers that will provide more than 90 days cover outside of the UK.

Im sorry, due to the answers I think I wasn’t very clear. I’m planning to open a legit ltd in the UK to run my business. My question was just if business owners in the uk, buy their exotics in the name of the company or if isn’t worth it.
My question is about buying exotics in the name of the company and not open a ltd just to register a car.

[Simpo Two]

D.Joker said:

My question was just if business owners in the uk, buy their exotics in the name of the company or if isn’t worth it.

That would seem to be the same as a dealer then - they must 'buy cars in the name of their company'. Does the word 'exotic' make a difference? Lancasters have millions of £-worth of Ferraris and Porsches etc outside.