Registering holiday home as a limited company
Q: My client is wanting to buy a holiday home overseas and has been told by the overseas authorities that he will need to register the property in the guise of a Limited company, he will use the property for himself and his family in the main, and would also consider renting out the property when it's not being used by him. He has been told this will be a benefit in kind for income tax purposes - is this true?
A: There are a number of countries which insist on residential property being bought within a Limited company including some countries which insist that a main residence is also bought in this manner.
A company is defined in s992 ITA 2007 as any body corporate or unincorporated association other than a partnership, a local authority or a local authority association.