Purchase of Residential flat by a Trading Company

A trading company would like to buy a residential flat

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A trading company engaged in healthcare services wants to buy a residential flat near the workplace to provide accommodation for employees when working late in City rather than paying for hotel bill. The part of the flat can also be used for renting out.

what is the impact of a trading company acquiring a residential flat to use as BTL and to use for their own purpose.

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By FactChecker
17th Jun 2024 09:30

"what is the impact" ... on what?
And in which circumstances?
(you've hinted at 2 already - commercial renting and provision of facility to staff - either of which can have all sorts of 'impacts' depending on the actual circumstances).

Would it not be sensible, *before* embarking on what is presumably a substantial investment, to seek professional advice?

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Replying to FactChecker:
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By ajayk9999
17th Jun 2024 22:03

Is there any restriction in terms of whether a trading company is allowed to buy a buy to let property

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By FactChecker
17th Jun 2024 22:48

"is allowed?" would only be negative if there was a specific law (or possibly article of the company) to prevent it.

If you'd asked "would be advised?" then there would be a lot of more useful answers - but only ones of use to you if provided by a professional whom you've appointed to give you advice (and after that person has asked you a LOT more questions about your circumstances, objectives and like/dislike of risk).

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By SteveHa
17th Jun 2024 09:35

Also need to consider if ATED is in point. Professional advice definitely advised.

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VAT
By Jason Croke
17th Jun 2024 09:39

Impossible to answer without knowing values involved and many other important details.

Who will be occupying? Employees, Directors, shareholders?

What does "part of the flat can be rented out" mean? Is the intention to rent it out to third parties as well as to employees?

If this is not an area you are comfortable with then refer to your Accounting network where a tax specialist should be able to deal with this.

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paddle steamer
By DJKL
17th Jun 2024 11:04

Ignoring tax I certainly see possible issues with H & S/staff safety /third party liability etc if let in part to non staff at same time as staff using- employer seems firmly in frame as responsible party.

The employer is taking on a fair bit of responsibility/liability should anything adverse happen and they likely ought to consider this very carefully; I think a serious discussion with a solicitor, an insurance broker as well as with an accountant would be advisable.

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By FactChecker
17th Jun 2024 12:13

+ Employment lawyer?

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