Leasing assets to your company

Did you know that you can rent your personal asset to your limited company?

The rental fee must be reasonable and in line with rental rates for similar assets locally.

You would then declare the lease/rental income via a self-assessment tax return.

If it is used solely for business purposes this can reduce your personal tax liability by allowing you to deduct several expense types from the rental profits.

This could include insurance, repairs/maintenance and/or general administrative costs, amongst others.

The key point to note is that if said individual pays higher-rate income tax at 40%, they stand to gain greater tax relief from these expenses than they would have via a limited company.

Leasing also allows the individual to retain ownership, protecting the assets from being seized if the company finds itself in serious trouble.

TLDR: You may rent many asset types to your limited company;
office space, machinery, equipment, vehicles, computers, property, etc.

Certain assets may require special treatment, so you should always consult with a professional to ensure your arrangements are legitimate.