Can a company buy a house for you to live in?

[HollowTalk]

If someone had a private limited company which earned a lot of money - sole shareholder - and had very few expenses then could they buy a house using company funds and live in it with their family? Would the home then be tax-free because it's a business expense? I was just thinking about this the other day so don't worry I am not in that position myself!

There is a reason this is a very rare occurance. There is just no benefit in it.

what tax would you be “cheating” if you did that? Owning your own home directly in the uk will be taxed far more favourably than via an offshore trust. At least in terms of uk tax.

if you live in a house owned by a company, you are really getting a benefit in kind which is taxable at market value of rent. Also you would be missing out on capital gains tax exemption for your own property. Companies also have to pay higher rates of stamp duty.

so generally not a great idea unless there is something about the specific circumstances. Better to take the funds out the company as a dividend, salary or loan. But obv your friend should get specialist tax advice

@SamReiver I still can't quote quotes (thanks app update!) so sorry for tagging you. I understand the events well, what my message is missing in inference I suppose. My point was that homeowners were not to blame.