For SDLT calculations there is a requirement to value the lease between connected parties on an arm's length basis. Does such rules apply for income tax / corporation tax?
Owners wish to lease the premises to their limited company that operates out of it. They incur mortgage interest personally and would be more tax efficient if their annual rental payments from the company simply covered the personal interest expense. Not sure if there is a similar anti-avoidance rule for income tax as there is for the SDLT though?