A client owns land which he leases to a ltd company (of which he is 100% shareholder) at nil rent. The company spent £200k improving the site over the last 10 years to house caravans and charges the company's customers for the pitch rental. The spend is capitalised in the company accounts as leasehold improvements. The lease is now being terminated and the land sold by the client including the improvements. The company will cease to trade. Assuming that the client does not pay the company for the improvements, what are the tax consequences for the company and the individual relating specifically to the improvements?
23rd May 2017
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Leasehold Improvements Connected Parties BIK?
Are Leasehold Improvments to a Directors property a benefit in kind?