Company buying a property

Hi, I hope you will be able to help. Can a Limited company buy a property (only one) and have the Director live in it. The company is not an investment company, it is providing services. What will be the circumstances with the different taxation, i.e. Stamp Duty Tax, AIA, BIK and everything else that could apply to it? Thank you

Hi,
Yes, a UK Limited company can buy a residential property, and the director can live in it.
You state that while this is not an investment company, it is providing services, though you don’t mention what these are, or the extent.
In general, any rental income received or due must be included in the Company Tax Return. 
The company might be able to claim tax relief on certain expenses related to the upkeep or maintenance of the property, but these need to be directly related to business purposes.
If the  property is for personal use by a director, allowable deductions will be limited.
No capital allowances (AIA) are available for the property purchase or major improvements.
The director will have to pay income tax on the benefit of living in the property, and the company will pay National Insurance.
Consideration should be given to Stamp Duty Land Tax which is charged at a higher rate when a company purchases residential property.
This rate increases if it is a High-Value Property.
A further consideration is Annual Tax on Enveloped Dwellings (ATED), which  is a tax on residential properties worth more than £500,000 owned by companies.
Thank you.

Thank you for your response. The company is providing services to various farms, however the property to be bought is residential, not a farm house/ property. The director will live in it. If he pays rent that is the acceptable rent per month for that particular area, is the director still liable to BIK tax?

Hi,
Thank you for your query regarding benefits for living accommodation, information can be found at:-
Company provided living accommodation (480: Chapter 21)
and
HS202 Living accommodation (2022)
if you require further advice on this matter, please seek professional help through a financial advisor or accountant.
Thank you.