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Renting Rent Free

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Hi All

Just want to check myself...

Ltd company owns a residential property.

The company wants to rent this property to someone for a 6 month period rent-free.

The tenant is not connected to the company by way of employee, ownership or director relationship. But, the tenant is the father of a Director of the company.

Are there any tax consequences here?

My first thoughts go to employee BIK (annual value plus 'yearly rent' of (cost - £75,000) x ORI) ) - does the father relationship somehow bring this into play? By way of associate to the Director?

P.S. property is valued less than £500,000 for ATED purposes.

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By David Ex
25th Apr 2022 13:56

Luke Spooner wrote:

Are there any tax consequences here?

Yes, there are.

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By Paul Crowley
25th Apr 2022 13:59

A very good reason not to have the building in the company

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By The Dullard
25th Apr 2022 15:24

I think you mean rent-free occupation, rather than the oxymoronic "renting rent-free".

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Replying to The Dullard:
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By Luke Spooner
27th Apr 2022 10:23

Got me on that one..

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