Solicitors Near Me

Find Solicitors Near Where You Live In The UK

Connecting you with  friendly, approachable solicitors near you without cost or obligation…

[adinserter block="1"]
0845 139 1999
|
Free Enquiry
  • Home
  • Legal Services
  • About Us
  • Join
  • Free Enquiry
  • Legal Updates
  • Contact

Can A Company Buy A House For A Director?

Can A Company Buy A House For A Director?Can a company buy a house for a director?

If you’re investigating whether a company can buy a house for a director, your best recourse will always be to consult a legal professional first.

To be connected to a specialist solicitor near to where you live or work, please either call us now on 0845 1391399 or complete a Free Online Enquiry.

That said, here is a thorough grounding in the basic situation when it comes to companies buying residential property for their directors and employees:

Can A Company Buy A House For A Director?

Yes, a company can buy a house for one of its directors. However, the process of doing so – and, critically, the associated tax implications – are by no means simple or beneficial.

This isn’t an accident. The idea that a director or shareholders in a firm could buy personal property to avoid paying tax is not a new one. This means the law is set up to prevent it and penalise people and companies who do.

The key determinant of whether this will be a beneficial idea or not is often whether the purchase will attract what is called a “Benefit In Kind” (BIK). This is a situation where a director is receiving a benefit from the house, such as:

  • Living in the accommodation themselves
  • Having their family or dependents living in the property
  • Letting any non-qualifying person (anyone with a familial connection to the company) occupy the property

Companies Buying Residential Properties And Tax

The goal of most people who are interested in whether companies can buy a house for one of their directors is the possibility of paying some degree of reduced tax by doing so.

The difference is usually between paying corporation tax (19% at time of writing) or a combination of Income Tax, Capital Gains Tax, and National Insurance Contributions (which can be much more).

The theory often imagined is that because a company is a separate legal identity from its owners, the property will be owned by the company and any rental income will be taxed at the corporate tax rate instead of the often higher Income Tax rate.

Unfortunately for those with this idea in mind, the reality is that this is rarely an advantage to a director living in the property. They are deriving a Benefit In Kind in the form of accommodation. The only exception would be if the director derived no benefit. For example, if the company rented the property to them at a fair market rate.

There are also additional tax rules for companies buying residential properties over £500 000 in value:

1) Stamp Duty Land Tax (SDLT)

If a person with a connection to someone who is part of the company (these are those non-qualifying people mentioned previously) lives in the property in the three years after purchase it will be subject to a special rate of SDLT.
This is charged at 15% of the property price when it is purchased. Even if the person living in the property is intending to pay a fair rent (as established by the local market), this cannot be avoided.

Any company in the UK that’s purchasing residential property is likely to need to pay this higher rate. This remains true even if the company is intending to develop the property and sell it on for a profit.

2) Annual Tax on Enveloped Dwellings (ATED)

SDLT is a barrier for the first three years after a property has been purchased by a company. Annual Tax on Enveloped Dwellings, on the other hand, remains in effect throughout the time that a property is owned. ATED is:

  1. Charged annually and in advance – this tax is levied every year and is paid a year in advance.
  2. Based on property value – this means it runs to several thousand pounds every year.
  3. Penalised harshly if not complied with – the fines for not paying ATED are significant and not to be risked.

How Else Could A Company Buy A House For A Director?

There are some other slightly more indirect options for a director who wants to explore their options when it comes to having their company buy a house for them. These include:

  1. Have the company loan them money – a company can lend money to a director. They can then do as they please with it. This would only attract a BIK if the director was paying less than a fair market rate of interest on the loan. Some companies do have articles of incorporation that prevent this though.
  2. Have the company pay dividends – a company can give the director a dividend payout. The director could then use this to purchase the property.
  3. Carry out a share buy-back – this option has received a great deal of negative press but remains an option for directors who are also shareholders. The company can buy out the director’s shares, giving them funds. However, Capital Gains Tax may be payable.

This is not to say that any of these options are sensible ideas in any particular case or that they will be beneficial – or even legal – depending on individual arrangements. That’s why it’s always vital to seek out expert legal advice whenever you are wondering whether a company can buy a house for a director.

Looking For Just The Right Kind Of Specialist To Advise You On Residential Property Purchases?

Solicitors Near Me will connect you with friendly, approachable solicitors without cost or commitment. Get in touch with us now for some free advice.

Solicitors Near Me

To be connected to a specialist solicitor near to where you live or work, please either call us now on 0845 1391399 or complete a Free Online Enquiry.

Can A Company Buy A House For A Director?

Solicitors Near Me For Business Legal Advice UK

Are you looking for business advice Solicitors Near Me? Solicitors Near Me for business legal advice UK – make a free enquiry today to be connected instantly with specialist business advice solicitors.

We can connect you to expert corporate and commercial solicitors near to where you live or work.

As a business owner, you need the right advice and guidance from legal experts to ensure you have a sound legal foundation for your enterprise and that you are compliant with the rules and regulations.

Our Solicitors Near Me service can connect you with local corporate and commercial solicitors who will be able to give you sound business advice as well as the legal expertise you require.

Do You Need Help Finding Business Legal Advice Solicitors Near Me?

Local legal experts have the advantage of knowing the local market and understanding the challenges businesses in the area are facing. They are often well connected in the commercial world with an excellent understanding of what makes a business successful.

We can put you in touch with the business law solicitors who are right for your needs and who will provide comprehensive legal help for your organisation.

To be connected to specialist business legal advice Solicitors Near Me, please either call us now on 0845 1391399 or complete a Free Online Enquiry.

Solicitors Near Me Business Legal Advice UK Service

Our corporate and commercial solicitors Near Me offer a full range of legal services for businesses, including the following:

  • Business agreement and contract solicitors
  • Commercial conveyancing solicitors
  • Commercial dispute solicitors
  • Commercial lease solicitors
  • General commercial property solicitors

Where Are Your Business Legal Advice Solicitors?

Our lawyers are located across the UK, with corporate and commercial solicitors in England, Ireland, Northern Ireland, Scotland and Wales on our books.

How Much Does Our Find A Business Legal Advice Solicitor Near Me Service Cost?

Our service connecting you with expert business legal advice solicitors is free of charge. There is no obligation to you to use the solicitors we introduce you to and you will have the chance to decide whether they will be a good fit for you before incurring any costs. Only if you decide that you would like to engage them to work on your behalf will you be liable for their fees.

Why Do I Need A Business Legal Advice Solicitor?

Solicitors Near Me For Business Legal Advice UKBusinesses will face a whole range of legal issues during their lifetime, from setting up a robust legal framework, through taking on commercial premises and employees to selling or merging. There is substantial scope for difficulty if the legal agreements are not sound and where details have not been adequately dealt with.

By working closely with legal experts, you can ensure that you have strong contracts in place, reducing the likelihood of disputes arising.

Business agreements and contracts

Business agreements and contracts are the foundation of your organisation. They should be tailored to suit the specific needs of your enterprise and cover as many eventualities as possible. This will mean that misunderstandings and disagreements are less likely and, if they do arise, you will have sound legal documentation to back up your position and put before the court, should an issue result in litigation.

Our solicitors excel at drafting strong business agreements and contracts that will give you the security you need combined with the flexibility to take on challenges. They are experienced negotiators and will work hard on your behalf to secure the best terms possible for your business.

Commercial conveyancing

Taking on commercial property is a major investment and it is essential to have genuine experts to ensure that your purchase is legally sound. Agreements to buy and sell commercial property are notoriously complex and it is important to check that you will be able to use the premises in the way that you wish.

Our commercial conveyancing lawyers will go through the title and legal restrictions with you to make sure that you are happy with the agreement before the purchase is completed.

Commercial disputes

Commercial disputes can be crippling to an organisation, taking key personnel away from their jobs and providing ongoing uncertainty. We have handpicked commercial legal experts who have outstanding reputations for dealing quickly and efficiently with business disputes so that you can go back to focusing on achieving your goals and ambitions.

It is generally better to resolve issues without litigation. Our commercial dispute lawyers can negotiate on your behalf and suggest innovative ways of reaching a compromise agreement so that you can avoid the need for court.

Commercial leases

Commercial leases are both complex and onerous for both landlords and tenants. Unlike other leases, a tenant cannot simply give notice and leave. Once they are locked into a commercial lease, they will remain liable for all rent to the end of the term, which is often between five and eight years.

There is also a risk that a tenant will be liable for all repairs and maintenance to the property. This could even mean putting it into a better condition than it was when they took it on, if the lease is not carefully checked.

Our solicitors will get to know your requirements for business premises and work to agree the right lease for your needs. They can negotiate issues such as the term of the lease, break clauses, liabilities for repairs, rent review clauses, consent for subletting and assigning and service charge caps.

Commercial property

Our solicitors can advise you across all of your commercial property needs to ensure that you have a solid legal framework for your undertakings. We can provide you with lawyers who deal with development, finance, investment, landlord and tenant issues, planning and environmental law.

Solicitors Near Me Who Deal With Business Legal Advice

If your business needs expert legal advice from corporate and commercial solicitors who have genuine in-depth knowledge of both law and the business world, we can provide you with the right connections.

Using the best possible lawyers is always a good move, meaning you stand the best chance of avoiding difficulties in the future as well as the reassurance of knowing that you have a solid legal foundation across all of your business activities.

Find Business Legal Advice Solicitors Near Me Now

To be connected to a specialist business legal advice solicitor near to where you live, please either call us now on 0845 1391399 or complete a Free Online Enquiry.

Your Risk Free Service Guarantee

Your
 Risk-Free   Service 
Guarantee

  • 01//
    Make your free enquiry >
  • 02//
    We’ll match you with a
    specialist solicitor near you
  • 03//
    Have a no obligation, no cost discussion to see if they are a good fit for your needs. If you choose to work with them great, if not you can move on with no cost to you

As Featured In:

As Featured In:

daily express solicitors near me

 


  

 

The contents of this website do not constitute legal advice and are provided for general information purposes only.

Commercial Solicitors Near Me · Conveyancing Solicitors Near Me · Contentious Probate Solicitors Near Me · Divorce Solicitors Near Me · Employment Solicitors Near Me · Family Solicitors Near Me· Immigration Solicitors Near Me · Will Writing Solicitors Near Me

Find Solicitors · Legal Articles/Blog

Disclaimer · Privacy · Terms

Copyright © 2025 ·

Solicitors Near Me is a trading name of Samson Consulting Limited.