We have a client who is just about to purchase a painting for £250,000, he is considering purchasing it through his personal company, the company can afford it, I cant see a problem with this as the painting will stay in storage and doesnt sound like a benefit in kind, I cant see anything in the articles that preclude the company from doing this. The company is an OMB and has no external shareholders to upset, am I missing something.
Thanks
Related resources
Replies (6)
Please login or register to join the discussion.
Next it will be wine and a question like 'if I buy a bottle of rare wine for £10,000 and drink it, can I claim a capital loss?'
That's insurance. Don't mean to [***] on your series of small fires, but insuranceweb any answers is a whole other exciting forum.
In all seriousness though is their an issue with the company owning it, it would be far easier to use company money as it has the funds whereas the owner would have to borrow or extract them. His intention is to sell the painting so this appears to be revenue to me so no CGT exemption or treatment if it was in his hands.
He is buying a single painting as an investment. Why do you consider that revenue rather than CGT?
Will having such a substantial investment in the company affect its status as a trading entity?
