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property rentals and claim for expenses

property rentals and claim for expenses

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Dear colleagues

Scenario:  Ltd company renders invoices for rental income from two properties as landlord only. 

The company is owned by one shareholder/director who part owns properties with spouse and family member.

Questions:

Trading classification of ltd company if rental income supplies mixed with the ltd companies' other turnover trade - 'design consultancy?'

If, mortgage interest payments, building insurance, utilities and other property expenses are paid personally by shareholder/director (because these are in personal name rather than that of the company), then am I able to record these in the company books as follows:

(1) credits to the directors loan account and corresponding debits to the company expenses for property expenses (gaining CT relief?  )

(2) Withdraw the funds from the company by recording debits to the directors loan account and corresponding credits to company bank acc?

(3) Would all the above work for both company tax -the problem being the income belongs to the company (only because rents are rendered in the company name) but property expenses are paid personally by the director/shareholder?

(4)  Are there any BIK considerations regarding recording credits to the directors' loan account and should therefore a dispensation be sought?

Kind regards,

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By 7555775
08th Oct 2014 14:08

Who owns the property!

I think you need to ask who actually owns the property and why anything is being put through the company if it does not own the property? Sounds a bit odd to me....

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