Benefit in Kind Question - Living in Employers Property

[Al Gorithum]

Will appreciate informed advice please.

Scenario:
Higher rate tax paying Director/Owner living in a property owned by the Co.

What's the BIK tax implications please?

Thanks in advance

[Mattt]

Any rent paid?

[LC23]

If it's owned by the employer then there is specific legislation on how to calculate the benefit in kind. This assumes it's not considered exempt as we have no background other than your post of course.

https://www.gov.uk/guidance/company-provided-livin...

[Joscal]

You need to speak to an accountant but in my case I had to pay full market rental rate for a house our company owns. It was only while I was between houses for less than a year, but certainly didn’t cause any issues.

This was ten years ago so rules may have changed since then.

[Al Gorithum]

Thank you everyone

No rent paid, so it looks like the rental value is taxed as income.

[DaveA8]

It seems that you are the owner of the company ? or at least a significant share holder.

If this is the case, you need specialist advice as this is not a straight forward BIK issue, it has ramifications around stamp duty and other charges

There was a case last year and one of the directors stayed a few nights while refurbishing, it was accepted she was doing work but that made no difference and the whole structure was undone, it was a significant amount.

Certainly one to be sure of your position on as HMRC watch it closely.

[Al Gorithum]

DaveA8 said:

It seems that you are the owner of the company ? or at least a significant share holder.

If this is the case, you need specialist advice as this is not a straight forward BIK issue, it has ramifications around stamp duty and other charges

There was a case last year and one of the directors stayed a few nights while refurbishing, it was accepted she was doing work but that made no difference and the whole structure was undone, it was a significant amount.

Certainly one to be sure of your position on as HMRC watch it closely.

Interesting. Thank you