The owner of a business is currently holding a property personally and renting it to the business. However, the business owner is a higher rate tax payer and therefore paying 40% (at least) tax on the rental profits (there are very few costs).
However, obviously he is only gaining a 19% CT deduction in the company tax comp.
Is there any obvious reason I’m missing why he shouldn’t just reduce the rent to keep him within the basic rate, and hence gain the tax difference.
Thanks for your help