My clients are a couple who have the chance to buy ( on expensive mortgage) a commercial property . They will buy this as individuals. This property has 2 - 3 tenants using rooms as treatment rooms for businesses. One of these businesses is a XXX limited company where one of the couple is sole director.
My question is :
Can the couple charge a high rent to XXX ltd company to cover their personal commercial mortgage costs and also effect a large cost to XXXltd thereby reducing corporation tax on this company.? The business does occupy more rooms than other tenants and has better facilities but the rental charge could be seen to be way above any "market rent" that other tenants may be charged
Can they charge what they like? Or is this too easy?
thanks in advance