Residential property company - benefit in kind?

Residential property company is letting property to directors children at lower than market rate

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Good afternoon all

I have a client company that owns several residential properties.  This year I have noticed that two of the properties are being let to the directors children for a lower than market rate (approx 2/3 of market rate).  My thoughts are that this will be a benefit in kind on the director - personal use of company asset.  The children are obviously not minors, but are still connected persons.  Any pearls of wisdom?  Thanks

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Portia profile image
By Portia Nina Levin
06th Dec 2017 16:06

How much are they worth?

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By TickTock
06th Dec 2017 16:25

Approx £200-£250k each property

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By Portia Nina Levin
06th Dec 2017 16:31

That's lucky then. Yes there is a BIK for the director. Fortunately, there isn't any ATED, atm.

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By TickTock
06th Dec 2017 16:33

Thanks Portia, I'm keeping an eye on the ATED

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By Portia Nina Levin
06th Dec 2017 16:50

If the £250K is a current value, you don't need to think about it for another 5 years, unless they bring in another lower threshold.

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