Tax treatment of converting director's garage to an office
Suppose ABC Ltd (not the real name) pays to have a garage at a domestic property (which is jointly owned by Mr and Mrs Smith) converted to habitable space which will then be used exclusively by the company for business purposes as a home office. Mr Smith is the sole shareholder and director of the company.
The company will not pay rent to Mr and Mrs Smith and will not claim any of the household expenses against its profits.
How does the payment for the conversion by the company affect the subsequent CGT due on the sale of the house and is there a charge to income tax on the cost of the conversion on Mr and Mrs Smith? Might there be a benefit-in-kind charge?
How is the payment treated in the accounts of ABC Ltd? Could it qualify for relief under the annual investment allowance?
Or is it all too complicated and should Mr Smith just pay for the conversion out of his dividend income from ABC Ltd.
- first year company tax return for a limited company 181 5
- Real names 1,248 37
- Dissolve a Ltd Company - How much do you charge? 405 7
- reliable alternative to registered ofice required 101 1
- Expenses Apps 157 2
- Entrepreneurs relief available? 170 4
- Quick Easy Quote 250 4
- What are options for non CA firm 1,795 29
- Solicitor accounts 65 1
- Unallocated client money 241 7
- Donaldson v HMRC case being heard tomorrow! 211 2
- change of office address 132 4
- Hive up - accounting and notes to financial statements 231 3
- Incorporation Relief 135 4
- Letting income or partnership income? 112 2
- Legal Advice Needed Bank Account Blocked 357 4
- Furniture Rental Business 103 2
- Client Death 558 9
- Accounts formation/ speculative advertising 200 4
- Moving into own BTL property - allowable costs 361 2
- Proposed Amendments to IAS 1 606
- Property exchange - 8-year legal delay following fall-out 485
- Sorry ignore me 382
- Accounting for Insurance Premium Financing 367
- SAGE Payroll Data for Import to MS Dynamics AX 281
- Cancelled 245
- Cancelled 219
- Bartercard 176
- C79 Discrepancy 172
- Sage Report Designer - Nominal Activity in Currency 163