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Introduction to this document

Rent or business asset disposal relief checklist

If you personally own property that your company uses for its business, there can be tax advantages to having the company pay you rent. However, doing so can mean a higher capital gains tax bill when you sell it.

Tax effects of charging rent

When your company uses a property you own personally, charging it rent can be a tax-efficient way of extracting profits as rent isnt liable to employees’ or employers’ NI, and is usually tax deductible from business profits.

However, the rent can reduce the business asset disposal relief (previously entrepreneurs’ relief) when the property is sold. Use our checklist to help you decide whether it is more tax efficient to charge rent.