I have a new client who has just signed up to a 10 year lease but the landlord refused to have the lease in ther name of a Ltd Company as they had been left with a bad debt previously. Given that Ltd Company is the best structure for this business, I am concerned that with the lease in my clients name that there might be a problem getting tax relief on the lease payments through the Limited Company? Is this a problem and if so is there a way around it?
Thank you
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So ... the individual sub-lets to the company, assuming that it is permitted under the terms of the main lease, and the company will get tax relief on its payments of rent to the individual. If the rents are the same, there is no problem if the company actually pays the landlord direct. Don't forget to report the rental income and rental paid on the individual's tax return.