Personal use of property in Limited Company?

by Readers Question

8:17 AM, 7th September 2018
About 2 years ago

Personal use of property in Limited Company?

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Personal use of property in Limited Company?

I have a small portfolio of BTL houses and am in the process of buying an apartment within my Limited company. It’s a very nice upmarket place and there’s a chance that in 2 or 3 years’ time I might like to move there on a permanent basis or perhaps only for a few months a year, but letting it on a short term basis for the rest of the year.

Can anyone advise what the situation with the tax man would be?

If I was to move in permanently buying it from my own limited company and paying the huge stamp duty wouldn’t make sense, or would I have to rent it from my company which also seems like a silly idea.

I guess this situation must occur occasionally.

Any thoughts or ideas as to how to handle this would be much appreciated.


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Neil Patterson

8:24 AM, 7th September 2018
About 2 years ago

Hi David,

We need to think of the company as a completely separate individual and that the property is not yours. Therefore you would effectively be renting the property if you were to personally live in it.

However, how you remunerate the company for this (maybe as an employee) good accountants I am sure will be very familiar with in the most tax efficient way.

You should also check the terms and conditions of any BTL or commercial loan you enter into.

Steve Masters

10:19 AM, 7th September 2018
About 2 years ago

You will need to consider ATED (Annual Tax on Enveloped Dwellings).

11:32 AM, 7th September 2018
About 2 years ago

My BTL mortgages prohibit living there.

Allan Hopkins

11:58 AM, 7th September 2018
About 2 years ago

Hi David,
On my accountants advice I pay for 2 months rent per year, which is my average length of stay. It’s then deducted from my Directors Loan account - see your accountant.


23:44 PM, 8th September 2018
About 2 years ago

Reply to the comment left by Steve Masters at 07/09/2018 - 10:19
Thanks for all the useful replies. That’s a really good point about ATED Steve, I had forgotten about that and it is over the threshold. It looks like if it’s rented out it’s not applicable but there to stop companies sitting on expensive empty properties though there is mention about personal use in HMRC’s difficult to understand wording.

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