have a LTD that own a pub, there is nothing in the lease that says the accomodation above must be lived in, but i believe that the accomodation will be exempt from benefit in kind as 2 managers live in in
both owners of the company ( 2 brothers) live above the pub with one of there girlfriends also living there, as well as there young child
the brothers are both 50/50 owners and directors of the company, and work full time in the pub along with the girlfriend,
the flat above pays - electricity and water is combined together between the pub and the flat, also is the rent
So the accomodation is exempt, as an employer for a pub is generally expected for people doing that sort of work, ( manager of a pub) nad is also better for security?
How about the electric, rent, water and general maintenance?
the previous owners, just put the full rent, electrcity and water through the business and the bulding is all in one, but im not so sure that is is correct procedure
thankyou in advance
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Please be aware that the exemption is not available to all directors (Source booklet 480 guidance at page 76):
" Where accommodation is provided by a company for a director of the company or an associated company, the exemption provided by (a) or (b) in paragraph 21.2 above is not given unless the director:
(a) has no ‘material interest’ (see paragraph 1.11) in the company, and
(b) is a ‘full-time working director’ (see paragraph 1.10) or the company is non-profit making or is a charity (see paragraphs 1.14 and 1.15) "
