A client is proposing to buy a very expensive classic car that he intends to keep in storage (no use personal use and no trading activity). Our initial advice was to buy this personally and benefit from the CGT exemption assuming the car will increase in value. Client has now questioned whether this should be purchased as an investment by his existing trading company, as he will have to take a loan out to fund the personal purchase. Initial thoughts are no due to potential BIK implications and also loss of exemption due to the possibility that CA's could be claimed and also possible effect on ER?
Readers thoughts would be appreciated