I own a UK based property and I have now relocated elsewhere. I also have a UK company managed by a director. Can I let the property in my name for a nominal value (or zero) to my company and have it sublet, with the rental income staying in the company? I am not a UK taxpayer anymore, so paying 20% income tax or 20% corporate tax shouldn't change much for HMRC.
Arthur Weller replies:
If you have no UK income, you could let the property in your own name, and use your UK personal allowance to mitigate the income tax, which may work out cheaper than letting it through your company. However, if that is not the case, you can do as you have described. You will need a proper tenancy agreement between yourself and the company. It is better if it states that you are renting it out to the company for 'as long as the landlord wants' (i.e., the tenancy can be terminated whenever the landlord decides).