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BIK on an aeroplane.

Individual buys an aeroplane (as you do) for his personal use only, he is transferring it to a Ltd purely for insurance purposes (if there’s an accident or claim). He is going to personally fund all the running costs etc.

This will be the only asset in the Ltd, with no trading income.

How on earth would this be taxed. 

Many thanks

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Had similar thoughts a few months ago.

I came to the conclusion that having the plane in the company could be an income tax disaster for the indivdual (it is always realistically going to be made available for personal use and subject to potential massive bik). 

I did think that the best way forward would be ownership through an LLP.  but, thankfully the client changed his mind and bought a share in a plane instead which guaranteed a set number of flying hours.

It was an absolute minefield!  Capital Allowances, VAT, Depreciation, licences, losses...

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I think the glass is half full.

blok wrote:

It was an absolute minefield!  Capital Allowances, VAT, Depreciation, licences, losses...

Of course what your really mean is 'nice little earner' surely?

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not if I want to sleep well at night!  too rich for me, I'm afraid.

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