Business address at home - is it a business asset?

[Pavlov]

If your Ltd company is registered at the place you live, is this property classed as a business asset? ie, if you were to be required to declare assets, would this be an asset? or, if someone was to claim money from your business via a court, could they view the property as an asset from which to claim their money, in the same way as if it were solely a business address?

I can't point you to any official information to clarify this, but my experience leads me to believe there is no link between the registered business address and your company assets. I have a limited company registered at my home address, and my accountant has never suggested including my home in the asset list he prepares every year. Also, accountants and other company formation businesses often offer the use of their address as your registered address, for a fee. I don't think they'd do this if there was any risk that the could be chased for your company debts.

No, a business asset needs to be owned by the company. If it's your residential home, owned by you personally, then it has nothing to do with a limited company that happens to have that as a registered office.

ok that makes sense, thank you!

so if the company is say 'mr x ltd' and the property is owned by 'mr x' then one is business and one is private?

Yes, because a ltd company is a separate legal individual. It can own its own assets, can trade separately from mr x and can be sued separately. Mr X can even bill 'mr x ltd' for his services/rent etc, although I wouldn't recommend this course of action before talking it through with an accountant as there are some downsides.

thank you. I am suing someone you see. And he is now selling his house, so I wondered if this would be an asset.

If you are suing his limited company and his house is owned by him personally you have no claim on his house.

I think sometimes directors can be made personally liable for debts of their insolvent company if they are found to have acted improperly. Very rarely happens, though, has to be an extreme case.

dancing ooh that is interesting. He has indeed acted improperly, and it is unfolding almost daily! I would not be surprised if he ends up being disqualified as a director, as he has been a bit naughty, its just a case of it being proven (we won't need to do that, events are working that way anyway).

So there is a chance, if he has not followed the guidelines of a Ltd company that he could be personally liable for debts accrued by his company? (he is sole director).

Well, we shall presume then that his property is not an asset. If that changes, maybe it might become an asset but for now, we will presume not.

Thanks for helping me understand it all a bit better. It is a minefield!