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CAT Free use of property

  • 12-10-2017 1:03pm
    #1
    Heisenburg81
    Closed Accounts Posts: 322 ✭✭


    S40 CATCA 2003 would cover the situation where a sole trader is using a commercial property free of charge - eg from a parent.
    What happens if a company is using a directors property and is not being charged rent?
    A company is a separate legal entity so is there any tax implication here?


Comments

  • #2
    thegolfer
    Registered Users, Registered Users 2 Posts: 346 ✭✭thegolfer


    Heisenburg81 wrote: »
    S40 CATCA 2003 would cover the situation where a sole trader is using a commercial property free of charge - eg from a parent.
    What happens if a company is using a directors property and is not being charged rent?
    A company is a separate legal entity so is there any tax implication here?

    Look through provisions applied.

    Company is owned by the directors, thus cannot gift to ones self.


  • #3
    Lockedout2
    Registered Users, Registered Users 2 Posts: 402 ✭✭Lockedout2


    I'd agree. Companies don't get gifts their shareholders get the benefit.


  • #4
    Heisenburg81
    Closed Accounts Posts: 322 ✭✭Heisenburg81


    So if I had a 100% interest in a trading company enjoying the free use of a commercial property owned by my parents, I could be levied with an annual benefit each 31/12 based on the possible rent the property would fetch on the open market.  Deemed to take the benefit minus the small gift exemption then eating into the Group 1 threshold annually?


  • #5
    thegolfer
    Registered Users, Registered Users 2 Posts: 346 ✭✭thegolfer


    Heisenburg81 wrote: »
    So if I had a 100% interest in a trading company enjoying the free use of a commercial property owned by my parents, I could be levied with an annual benefit each 31/12 based on the possible rent the property would fetch on the open market.  Deemed to take the benefit minus the small gift exemption then eating into the Group 1 threshold annually?

    Correct.
    Look to S.43(2) and (3) CATCA for the relevant section.


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