Chrisp
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July 2011
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buying art as a limited comapny, by Chrisp on Sept 24, 2011 22:11:11 GMT 1, Hi there,
Not sure where to post this so please move if needed?! I have been buying a few pieces of art through my limited company. Can anyone please give me any advise on possible problems I may have in doing so, as far as know(which is very little) it is ok to do so but when sold the money from any sales must obviously go back into the company. Are there any possible tax implications in owning the artwork that may be incurred? Any shared knowledge will be greatly appreciated!
Chris
Hi there,
Not sure where to post this so please move if needed?! I have been buying a few pieces of art through my limited company. Can anyone please give me any advise on possible problems I may have in doing so, as far as know(which is very little) it is ok to do so but when sold the money from any sales must obviously go back into the company. Are there any possible tax implications in owning the artwork that may be incurred? Any shared knowledge will be greatly appreciated!
Chris
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Hubble Bubble
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December 2010
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buying art as a limited comapny, by Hubble Bubble on Sept 24, 2011 22:16:52 GMT 1, Well, obviously: if the company is ever in financial trouble administrators would be able to seize the artwork. Also, unless your business is art related you would need to ensure that you have premises at which you can at least claim to be hanging the art. If you work from home, for example, you're on dodgy ground. Hope this helps.
Well, obviously: if the company is ever in financial trouble administrators would be able to seize the artwork. Also, unless your business is art related you would need to ensure that you have premises at which you can at least claim to be hanging the art. If you work from home, for example, you're on dodgy ground. Hope this helps.
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buying art as a limited comapny, by fingerz on Sept 24, 2011 22:21:07 GMT 1, it goes in the fixtures and fittings
it goes in the fixtures and fittings
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Hubble Bubble
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December 2010
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buying art as a limited comapny, by Hubble Bubble on Sept 24, 2011 22:25:20 GMT 1, ^^not if you don't have office premises it doesn't
^^not if you don't have office premises it doesn't
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buying art as a limited comapny, by fingerz on Sept 24, 2011 22:26:25 GMT 1, ^ true story .....
^ true story .....
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Chrisp
Junior Member
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July 2011
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buying art as a limited comapny, by Chrisp on Sept 24, 2011 22:30:03 GMT 1, I do rent an office but some of the art is hanging on my home walls, I can find very little on the internet regarding the subject and was just looking for any advice as I know very little. The major problem I can see would be VAT, and I am unsure what tax implications are involved? As a company you must surely be able to own a certain amount of artwork as I have seen many companies that do so.
Thx & regards,
Gordon Brown
I do rent an office but some of the art is hanging on my home walls, I can find very little on the internet regarding the subject and was just looking for any advice as I know very little. The major problem I can see would be VAT, and I am unsure what tax implications are involved? As a company you must surely be able to own a certain amount of artwork as I have seen many companies that do so.
Thx & regards,
Gordon Brown
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Chrisp
Junior Member
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July 2011
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buying art as a limited comapny, by Chrisp on Sept 24, 2011 22:39:05 GMT 1, fingerz i think going to jail is a little wide but i will let you know the outcome!
fingerz i think going to jail is a little wide but i will let you know the outcome!
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buying art as a limited comapny, by fingerz on Sept 24, 2011 22:41:25 GMT 1, not if your Gordon Brown it's not ....
not if your Gordon Brown it's not ....
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mouser
Junior Member
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April 2011
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buying art as a limited comapny, by mouser on Sept 24, 2011 22:42:31 GMT 1, Also, unless your business is art related you would need to ensure that you have premises at which you can at least claim to be hanging the art. If you work from home, for example, you're on dodgy ground. Hope this helps.
Not true, the art can be bought as an asset for the company, no different than investing company profits. As long as the work is insured, you are fine. I run a limited company and have done alot of work on this, the company is registered at my address and the "company" art is also kept there with no complications whatsoever.
The art is bought with company profits, with receipts / invoices lodged with accountant verifying purchase of company assets, any sale of these pieces is company profit and liable for tax.
Also, unless your business is art related you would need to ensure that you have premises at which you can at least claim to be hanging the art. If you work from home, for example, you're on dodgy ground. Hope this helps. Not true, the art can be bought as an asset for the company, no different than investing company profits. As long as the work is insured, you are fine. I run a limited company and have done alot of work on this, the company is registered at my address and the "company" art is also kept there with no complications whatsoever. The art is bought with company profits, with receipts / invoices lodged with accountant verifying purchase of company assets, any sale of these pieces is company profit and liable for tax.
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Chrisp
Junior Member
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July 2011
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buying art as a limited comapny, by Chrisp on Sept 24, 2011 22:46:13 GMT 1, thanks thats good to know, can you please tell me where you know this from ad fingerz says i will go to jail for my crimes! ;D
thanks thats good to know, can you please tell me where you know this from ad fingerz says i will go to jail for my crimes! ;D
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buying art as a limited comapny, by fingerz on Sept 24, 2011 22:53:44 GMT 1, why dont you ask your accountant , i'm sure he/she will know
why dont you ask your accountant , i'm sure he/she will know
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mouser
Junior Member
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April 2011
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buying art as a limited comapny, by mouser on Sept 24, 2011 22:59:18 GMT 1, chrisby, you have mail.
chrisby, you have mail.
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hunter
New Member
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September 2007
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buying art as a limited comapny, by hunter on Sept 24, 2011 23:02:05 GMT 1, Possible tax liability on a Company asset made available for private use.
Possible tax liability on a Company asset made available for private use.
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Chrisp
Junior Member
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July 2011
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buying art as a limited comapny, by Chrisp on Sept 24, 2011 23:04:07 GMT 1, i have just sent him an email. he works for a fairly large group of accountants so i will post the reply. i would of asked him first but i am sure he would of told me to spend my money better else where! like tools,vans, training and so on but thats just normal its not the same buzz from owning a new power drill is it?
chris
i have just sent him an email. he works for a fairly large group of accountants so i will post the reply. i would of asked him first but i am sure he would of told me to spend my money better else where! like tools,vans, training and so on but thats just normal its not the same buzz from owning a new power drill is it? chris
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mouser
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April 2011
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buying art as a limited comapny, by mouser on Sept 24, 2011 23:11:32 GMT 1, Just be carefull to leave enough in your accounts for your year end reconcilliations, its very easy to get carried away with looking at a business account and getting frisky until the cheecky tax bill comes in mid december..... I got caught out first year and only made it by the skin of my teeth.
Just be carefull to leave enough in your accounts for your year end reconcilliations, its very easy to get carried away with looking at a business account and getting frisky until the cheecky tax bill comes in mid december..... I got caught out first year and only made it by the skin of my teeth.
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Hubble Bubble
Junior Member
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December 2010
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buying art as a limited comapny, by Hubble Bubble on Sept 24, 2011 23:19:35 GMT 1, I stand corrected mouser. Will be speaking with my accountants in Monday:)
I stand corrected mouser. Will be speaking with my accountants in Monday:)
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buying art as a limited comapny, by manty on Sept 25, 2011 18:52:23 GMT 1, can you ask him about the vat implications for me
ta
being a bit thick can i ask something
if i bought something for say £200 and have the receipt etc
my business can buy this off me for £200
then it can sell it at market price of say £50
therefore my business takes the hit, not me?
can you ask him about the vat implications for me
ta
being a bit thick can i ask something
if i bought something for say £200 and have the receipt etc
my business can buy this off me for £200
then it can sell it at market price of say £50
therefore my business takes the hit, not me?
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mouser
Junior Member
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April 2011
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buying art as a limited comapny, by mouser on Sept 25, 2011 19:26:23 GMT 1, As your name would be on all 3 receipts manty, it sounds like the type of thing that'd get you into very deep bother if mr taxman decided to have a look.
As your name would be on all 3 receipts manty, it sounds like the type of thing that'd get you into very deep bother if mr taxman decided to have a look.
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craigf
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May 2007
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buying art as a limited comapny, by craigf on Sept 25, 2011 19:48:02 GMT 1, First point is it's your company so it needs funding somehow and unless it makes a profit somewhere else you've just used your own money to buy something and then sell it to yourself.
Then assuming you do have profits from other sales within the business you would need to potentially charge vat and prove that the sale to yourself was at arms length I.e. Fair Market value otherwise it wouldn't be allowable for income tax deduction
These are just a couple of simple points, it then gets a lot more complicated. Bottom line is there probably isn't a loop hole and if there is it may not actually help as much as you think plus the hassle factor and possible fines, interest and worse makes it one to stay away from ;D
can you ask him about the vat implications for me ta being a bit thick can i ask something if i bought something for say £200 and have the receipt etc my business can buy this off me for £200 then it can sell it at market price of say £50 therefore my business takes the hit, not me?
First point is it's your company so it needs funding somehow and unless it makes a profit somewhere else you've just used your own money to buy something and then sell it to yourself. Then assuming you do have profits from other sales within the business you would need to potentially charge vat and prove that the sale to yourself was at arms length I.e. Fair Market value otherwise it wouldn't be allowable for income tax deduction These are just a couple of simple points, it then gets a lot more complicated. Bottom line is there probably isn't a loop hole and if there is it may not actually help as much as you think plus the hassle factor and possible fines, interest and worse makes it one to stay away from ;D can you ask him about the vat implications for me ta being a bit thick can i ask something if i bought something for say £200 and have the receipt etc my business can buy this off me for £200 then it can sell it at market price of say £50 therefore my business takes the hit, not me?
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Hubble Bubble
Junior Member
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December 2010
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buying art as a limited comapny, by Hubble Bubble on Sept 25, 2011 20:14:02 GMT 1, can you ask him about the vat implications for me ta being a bit thick can i ask something if i bought something for say £200 and have the receipt etc my business can buy this off me for £200 then it can sell it at market price of say £50 therefore my business takes the hit, not me?
Manty Forget messing about with the VAT. Only claim VAT back if what is purchased is a genuine business expense. Never ever mess with VAT.
That's my advice on VAT FWIW
What I would say is that you're talking about a different thing that has been described earlier. You mention a depreciating asset as opposed to an appreciating asset.
If you bought something for £200 and you're a basic rate tax payer, that purchase would have cost you £250. When you sell it for £50, that means the whole experience has cost you £200.
If your company buys it from you, it's still cost you £250 to buy. Your company then buys it from you at £ 200 meaning you receive £200 from the company and have tax to pay on this of £ 40. So now it's cost you £ 290 to own the art (you haven’t gained the £200, simply removed it from your company… it was yours all along, sheltering in the company). Your company makes a £150 loss on the painting which means that it can write this off against its tax bill (I'm not actually sure it can but lets assume it can). This reduces the company tax bill by £30. So even here, taking the £30 off the £ 290 means it's still cost you £260 to own the art - and that's before you are able to take the £30 out of the company (you'd have to pay £7.50 to get it out which would escalate the cost of ownership to £267.50 as opposed to the £200 it has cost you as an individual)
Might have boobed here... I'm no mathematician and I'm waiting for clearance from a mate who is a tax accountant before I post again...
can you ask him about the vat implications for me ta being a bit thick can i ask something if i bought something for say £200 and have the receipt etc my business can buy this off me for £200 then it can sell it at market price of say £50 therefore my business takes the hit, not me? Manty Forget messing about with the VAT. Only claim VAT back if what is purchased is a genuine business expense. Never ever mess with VAT. That's my advice on VAT FWIW What I would say is that you're talking about a different thing that has been described earlier. You mention a depreciating asset as opposed to an appreciating asset. If you bought something for £200 and you're a basic rate tax payer, that purchase would have cost you £250. When you sell it for £50, that means the whole experience has cost you £200. If your company buys it from you, it's still cost you £250 to buy. Your company then buys it from you at £ 200 meaning you receive £200 from the company and have tax to pay on this of £ 40. So now it's cost you £ 290 to own the art (you haven’t gained the £200, simply removed it from your company… it was yours all along, sheltering in the company). Your company makes a £150 loss on the painting which means that it can write this off against its tax bill (I'm not actually sure it can but lets assume it can). This reduces the company tax bill by £30. So even here, taking the £30 off the £ 290 means it's still cost you £260 to own the art - and that's before you are able to take the £30 out of the company (you'd have to pay £7.50 to get it out which would escalate the cost of ownership to £267.50 as opposed to the £200 it has cost you as an individual) Might have boobed here... I'm no mathematician and I'm waiting for clearance from a mate who is a tax accountant before I post again...
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chaturz
Junior Member
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May 2011
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buying art as a limited comapny, by chaturz on Sept 25, 2011 20:42:01 GMT 1, wow this is something ive been thinking about for a while and am quite keen to hear the outcome on. Im interested not because I think it will make buying cheaper but to see if it is a legit way to spend my companies cash as technically you cant spend your company profit on non work related bits. In other words ill have legit access to a pool of funds to purchase with, without worrying about my personal account situation.
wow this is something ive been thinking about for a while and am quite keen to hear the outcome on. Im interested not because I think it will make buying cheaper but to see if it is a legit way to spend my companies cash as technically you cant spend your company profit on non work related bits. In other words ill have legit access to a pool of funds to purchase with, without worrying about my personal account situation.
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buying art as a limited comapny, by manty on Sept 25, 2011 22:05:18 GMT 1, can you ask him about the vat implications for me ta being a bit thick can i ask something if i bought something for say £200 and have the receipt etc my business can buy this off me for £200 then it can sell it at market price of say £50 therefore my business takes the hit, not me? Manty Forget messing about with the VAT. Only claim VAT back if what is purchased is a genuine business expense. Never ever mess with VAT. That's my advice on VAT FWIW What I would say is that you're talking about a different thing that has been described earlier. You mention a depreciating asset as opposed to an appreciating asset. If you bought something for £200 and you're a basic rate tax payer, that purchase would have cost you £250. When you sell it for £50, that means the whole experience has cost you £200. If your company buys it from you, it's still cost you £250 to buy. Your company then buys it from you at £ 200 meaning you receive £200 from the company and have tax to pay on this of £ 40. So now it's cost you £ 290 to own the art (you haven’t gained the £200, simply removed it from your company… it was yours all along, sheltering in the company). Your company makes a £150 loss on the painting which means that it can write this off against its tax bill (I'm not actually sure it can but lets assume it can). This reduces the company tax bill by £30. So even here, taking the £30 off the £ 290 means it's still cost you £260 to own the art - and that's before you are able to take the £30 out of the company (you'd have to pay £7.50 to get it out which would escalate the cost of ownership to £267.50 as opposed to the £200 it has cost you as an individual) Might have boobed here... I'm no mathematician and I'm waiting for clearance from a mate who is a tax accountant before I post again...
well you just stole the jam out of my donut
Thanks a lot ;D
can you ask him about the vat implications for me ta being a bit thick can i ask something if i bought something for say £200 and have the receipt etc my business can buy this off me for £200 then it can sell it at market price of say £50 therefore my business takes the hit, not me? Manty Forget messing about with the VAT. Only claim VAT back if what is purchased is a genuine business expense. Never ever mess with VAT. That's my advice on VAT FWIW What I would say is that you're talking about a different thing that has been described earlier. You mention a depreciating asset as opposed to an appreciating asset. If you bought something for £200 and you're a basic rate tax payer, that purchase would have cost you £250. When you sell it for £50, that means the whole experience has cost you £200. If your company buys it from you, it's still cost you £250 to buy. Your company then buys it from you at £ 200 meaning you receive £200 from the company and have tax to pay on this of £ 40. So now it's cost you £ 290 to own the art (you haven’t gained the £200, simply removed it from your company… it was yours all along, sheltering in the company). Your company makes a £150 loss on the painting which means that it can write this off against its tax bill (I'm not actually sure it can but lets assume it can). This reduces the company tax bill by £30. So even here, taking the £30 off the £ 290 means it's still cost you £260 to own the art - and that's before you are able to take the £30 out of the company (you'd have to pay £7.50 to get it out which would escalate the cost of ownership to £267.50 as opposed to the £200 it has cost you as an individual) Might have boobed here... I'm no mathematician and I'm waiting for clearance from a mate who is a tax accountant before I post again... well you just stole the jam out of my donut Thanks a lot ;D
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chrispa
Junior Member
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May 2006
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buying art as a limited comapny, by chrispa on Sept 25, 2011 22:42:12 GMT 1, Dont believe some of these posts above are correct Art is not an item that can be offset against expenses and is accounted for very differently as a "long term asset" I briefly looked into this and concluded that there are no benefits in buying art thru a company
Dont believe some of these posts above are correct Art is not an item that can be offset against expenses and is accounted for very differently as a "long term asset" I briefly looked into this and concluded that there are no benefits in buying art thru a company
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Hubble Bubble
Junior Member
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December 2010
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buying art as a limited comapny, by Hubble Bubble on Sept 26, 2011 7:05:11 GMT 1, ^^Agreed Chrispa.
Manty... I have been tossing and turning thinking of my maths. I made a mistake. Your company would receive £50 for the artwork. But it would cost you £10 to get this out of the company. Thus the cost of owning through the company is £227.50 versus £200 privately.
^^Agreed Chrispa.
Manty... I have been tossing and turning thinking of my maths. I made a mistake. Your company would receive £50 for the artwork. But it would cost you £10 to get this out of the company. Thus the cost of owning through the company is £227.50 versus £200 privately.
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Hubble Bubble
Junior Member
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December 2010
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buying art as a limited comapny, by Hubble Bubble on Sept 26, 2011 10:38:07 GMT 1, Also, unless your business is art related you would need to ensure that you have premises at which you can at least claim to be hanging the art. If you work from home, for example, you're on dodgy ground. Hope this helps. Not true, the art can be bought as an asset for the company, no different than investing company profits. As long as the work is insured, you are fine. I run a limited company and have done alot of work on this, the company is registered at my address and the "company" art is also kept there with no complications whatsoever. The art is bought with company profits, with receipts / invoices lodged with accountant verifying purchase of company assets, any sale of these pieces is company profit and liable for tax.
Mouser
I've been busy with my quill pen
Like I say at the end, everyone's circumstances are and every scenario is different, so I'm sure what works for you is best for you. Here is my view of things...
Mr Hubblebubble owns Hubblebubble Ltd a private ltd company that he runs from home. The company doesn't trade in art therefore purchase of art is not a company expense that can be offset against tax. Mr Hubblebubble has had a good year at Hubblebubble Ltd and has £50k of profit in the company after he has paid himself his full salary at lower rate tax thresholds. Mr Hubblebubble is an art lover, knows a good deal when he sees one and has his eye on a Banksy canvas at £50k. He's sure it will be an asset and hopes it will go up in value. This proves to be true, with the Banksy canvas trebling in value in two years.
Question. Is it better to buy, own and sell the asset as Mr Hubblebubble or as Hubblebubble Ltd.
So, as Mr Hubblebubble, he needs to pay higher rate tax on the £50k before he can buy the canvas (assuming he’s already paid the corporation tax and is buying the canvas with retained profit) . Therefore he has to pay £12,500 to withdraw the £50k (this is a worst case scenario – he would have to pay much less, for instance if he had the money already in say, ISAs, or bought with an inheritance). He then buys the canvas (being smart, he owns it jointly with Mrs Hubblebubble) and it is his to enjoy/send to Mr Frameman/post pics on the forum as he wishes. When he sells it, two years later, it has increased in value by £100k to £150k. This represents a £100k capital gain. His allowance is £10.5k per annum which he isn’t allowed to roll over, (but, seeing as he owns it with Mrs Hubblebubble they get two lots of £10.5 allowance) therefore he has to pay capital gains tax on the balance of the gain over the two years he's owned the canvas (£79k). Mr Hubblebublble is a higher rate taxpayer so his CGT is 28% on half of £79k which is is £11,060. Mrs Hubblebubble is a lower rate taxpayer so her CGT bill is 18% of her half of £79k which is £ 7,110. Therefore, the cost of owning the Banksy canvas to Mr Hubblebubble as a private individual has been £ 30,670.
Now let's say Hubblebubble Ltd buy the same Banksy. The piece is classed as an asset so results in no deduction from the company tax bill. The company buys it and holds it, the only difference being - at this point, that Mr Hubblebubble has saved himself £12,500. Two years later, on sale, the company has a £100k profit on its books that Mr Hubblebubble wants to take out of the company. To do this he must now attempt to withdraw this £100k from the company. The cost of doing that is firstly 20% corporation tax, which is £20k. Then, to get the remaining 80k of profit out of the company he must pay another £20k in higher rate tax as a personal liability. Add to that the taxman can legitimately claim that Mr Hubblebubble has been enjoying his art as a benefit in kind - it's been at his house hasn't it, on his walls - and Mr Taxman (not Mr Frameman) comes calling for a further 40% of 20% of the market value of the piece when purchased per annum (which is the benefit in kind rate of tax). So that’s £4,000 per annum Mr Hubblebubble would have to pay just for hanging the Banksy on his wall. So, this makes the total cost to Mr Hubblebubble of his company, Hubblebubble Ltd, owning the Banksy canvas £48,000.
So, buying the art privately, Mr Hubblebubble gains £100k at a cost of £30,670 making a net gain of £69,330
Buying the art through Hubblebubble Ltd, Mr Hubblebubble gains £80k at a cost of £48k making a net gain of £32k.
Of course, every scenario is different so there is no cast iron sure way nailing this down. But, IMHO and with the advice I’ve had, I think it’s best to own the art (if it’s going to increase in value) outside of your limited company.
HB
Also, unless your business is art related you would need to ensure that you have premises at which you can at least claim to be hanging the art. If you work from home, for example, you're on dodgy ground. Hope this helps. Not true, the art can be bought as an asset for the company, no different than investing company profits. As long as the work is insured, you are fine. I run a limited company and have done alot of work on this, the company is registered at my address and the "company" art is also kept there with no complications whatsoever. The art is bought with company profits, with receipts / invoices lodged with accountant verifying purchase of company assets, any sale of these pieces is company profit and liable for tax. Mouser I've been busy with my quill pen Like I say at the end, everyone's circumstances are and every scenario is different, so I'm sure what works for you is best for you. Here is my view of things... Mr Hubblebubble owns Hubblebubble Ltd a private ltd company that he runs from home. The company doesn't trade in art therefore purchase of art is not a company expense that can be offset against tax. Mr Hubblebubble has had a good year at Hubblebubble Ltd and has £50k of profit in the company after he has paid himself his full salary at lower rate tax thresholds. Mr Hubblebubble is an art lover, knows a good deal when he sees one and has his eye on a Banksy canvas at £50k. He's sure it will be an asset and hopes it will go up in value. This proves to be true, with the Banksy canvas trebling in value in two years. Question. Is it better to buy, own and sell the asset as Mr Hubblebubble or as Hubblebubble Ltd. So, as Mr Hubblebubble, he needs to pay higher rate tax on the £50k before he can buy the canvas (assuming he’s already paid the corporation tax and is buying the canvas with retained profit) . Therefore he has to pay £12,500 to withdraw the £50k (this is a worst case scenario – he would have to pay much less, for instance if he had the money already in say, ISAs, or bought with an inheritance). He then buys the canvas (being smart, he owns it jointly with Mrs Hubblebubble) and it is his to enjoy/send to Mr Frameman/post pics on the forum as he wishes. When he sells it, two years later, it has increased in value by £100k to £150k. This represents a £100k capital gain. His allowance is £10.5k per annum which he isn’t allowed to roll over, (but, seeing as he owns it with Mrs Hubblebubble they get two lots of £10.5 allowance) therefore he has to pay capital gains tax on the balance of the gain over the two years he's owned the canvas (£79k). Mr Hubblebublble is a higher rate taxpayer so his CGT is 28% on half of £79k which is is £11,060. Mrs Hubblebubble is a lower rate taxpayer so her CGT bill is 18% of her half of £79k which is £ 7,110. Therefore, the cost of owning the Banksy canvas to Mr Hubblebubble as a private individual has been £ 30,670. Now let's say Hubblebubble Ltd buy the same Banksy. The piece is classed as an asset so results in no deduction from the company tax bill. The company buys it and holds it, the only difference being - at this point, that Mr Hubblebubble has saved himself £12,500. Two years later, on sale, the company has a £100k profit on its books that Mr Hubblebubble wants to take out of the company. To do this he must now attempt to withdraw this £100k from the company. The cost of doing that is firstly 20% corporation tax, which is £20k. Then, to get the remaining 80k of profit out of the company he must pay another £20k in higher rate tax as a personal liability. Add to that the taxman can legitimately claim that Mr Hubblebubble has been enjoying his art as a benefit in kind - it's been at his house hasn't it, on his walls - and Mr Taxman (not Mr Frameman) comes calling for a further 40% of 20% of the market value of the piece when purchased per annum (which is the benefit in kind rate of tax). So that’s £4,000 per annum Mr Hubblebubble would have to pay just for hanging the Banksy on his wall. So, this makes the total cost to Mr Hubblebubble of his company, Hubblebubble Ltd, owning the Banksy canvas £48,000. So, buying the art privately, Mr Hubblebubble gains £100k at a cost of £30,670 making a net gain of £69,330 Buying the art through Hubblebubble Ltd, Mr Hubblebubble gains £80k at a cost of £48k making a net gain of £32k. Of course, every scenario is different so there is no cast iron sure way nailing this down. But, IMHO and with the advice I’ve had, I think it’s best to own the art (if it’s going to increase in value) outside of your limited company. HB
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Harveyn
Forum Guardian
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July 2007
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buying art as a limited comapny, by Harveyn on Sept 26, 2011 12:06:51 GMT 1, Nice work HB.
That said I think is fairly sexiest to assume that Mrs Hubblebubble is a lower rate taxpayer......
Nice work HB. That said I think is fairly sexiest to assume that Mrs Hubblebubble is a lower rate taxpayer......
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alexnh123
New Member
Posts • 851
Likes • 9
October 2007
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buying art as a limited comapny, by alexnh123 on Sept 26, 2011 12:25:20 GMT 1, a woman's work is never done....
a woman's work is never done....
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Hubble Bubble
Junior Member
Posts • 4,111
Likes • 3,558
December 2010
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buying art as a limited comapny, by Hubble Bubble on Sept 26, 2011 12:49:35 GMT 1, ^^ All of the above
(I was simply substituting Mrs HB for 'married partner'... I would never insinuate a female would or should receive lower salary than a male)
^^ All of the above (I was simply substituting Mrs HB for 'married partner'... I would never insinuate a female would or should receive lower salary than a male)
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mouser
Junior Member
Posts • 1,236
Likes • 1,148
April 2011
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buying art as a limited comapny, by mouser on Sept 26, 2011 20:41:54 GMT 1, So, all in the answer to the original question asked is, yes its Ok to buy art through a limited company if done right and you are willing to accept less hypothetical profit than buying it personally and accepting the current taxations etc vs biting the bullet later.
(what happens if your piece looses value and you have to sell for a loss? you'd still be liable for the higher tax rate as youd taken it out as personal cash, but limited damage if done through company ?)
So, all in the answer to the original question asked is, yes its Ok to buy art through a limited company if done right and you are willing to accept less hypothetical profit than buying it personally and accepting the current taxations etc vs biting the bullet later.
(what happens if your piece looses value and you have to sell for a loss? you'd still be liable for the higher tax rate as youd taken it out as personal cash, but limited damage if done through company ?)
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Hubble Bubble
Junior Member
Posts • 4,111
Likes • 3,558
December 2010
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buying art as a limited comapny, by Hubble Bubble on Sept 26, 2011 22:13:03 GMT 1, Yes mouser. If you want less profit on you art assets when you sell then buy through a company. If you want to buy art that loses you money then I guess the company would be better for that too.
Yes mouser. If you want less profit on you art assets when you sell then buy through a company. If you want to buy art that loses you money then I guess the company would be better for that too.
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