I wonder if someone can advise on this proposed scheme which was suggested to me:
Mr A and Mrs A are directors of a Jersey company, say company X. Mr A sells his property (not PPR) to the Jersey company.
The Jersey company leases the property to a UK company, say company Y, of which Mr A is the director. The company Y rents out the property, the rental income under the arrangement being a commercial rent, but the cost of the lease from the Jersey company should eat up most of the income.
I suppose the idea is to shift the income to the Jersey company....
To tax specialists, who have this sort of stuff for breakfast, can you comment? And what is the current line of thinking on control and management vis-a-vis company residence?
Thank you in advance.