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Introduction to this document

Rent or entrepreneurs’ 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.

Property

When your company uses a property you own personally, charging it rent can be a tax-efficient way of extracting profits. It doesn’t attract employees’ or employers’ NI, and it is usually deductible for corporation tax - unlike dividends.

However, the rent will restrict the availability of entrepreneurs’ relief when the property is sold. So what is best? Unfortunately there is no single correct answer, but using our checklist will help you weigh up the pros and cons of each option.