iamzero
Full Member
Posts โข 9,190
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May 2011
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Buying business art, by iamzero on May 9, 2019 19:39:40 GMT 1, A friend of my has a relatively small U.K. based business that has done quite well this year and thought he could buy himself/ the company a Banksy through the business. Anyone know if this is personally beneficial tax wise or does it open up a confusing can of worms?
A friend of my has a relatively small U.K. based business that has done quite well this year and thought he could buy himself/ the company a Banksy through the business. Anyone know if this is personally beneficial tax wise or does it open up a confusing can of worms?
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Buying business art, by Happy Shopper on May 9, 2019 19:55:17 GMT 1, A friend of my has a relatively small U.K. based business that has done quite well this year and thought he could buy himself/ the company a Banksy through the business. Anyone know if this is personally beneficial tax wise or does it open up a confusing can of worms?
I guess it becomes an asset of the company and any profit from selling at some point would be a business profit, or loss, and taxed as such.
A friend of my has a relatively small U.K. based business that has done quite well this year and thought he could buy himself/ the company a Banksy through the business. Anyone know if this is personally beneficial tax wise or does it open up a confusing can of worms? I guess it becomes an asset of the company and any profit from selling at some point would be a business profit, or loss, and taxed as such. |
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iamzero
Full Member
Posts โข 9,190
Likes โข 8,541
May 2011
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Buying business art, by iamzero on May 9, 2019 20:01:52 GMT 1, Thatโs what I thought. I said itโd possibly be better to pay yourself a dividend type thing and take a hit on the tax now rather than any profit rise.
Thatโs what I thought. I said itโd possibly be better to pay yourself a dividend type thing and take a hit on the tax now rather than any profit rise.
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milou2
New Member
Posts โข 70
Likes โข 66
May 2010
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Buying business art, by milou2 on May 9, 2019 20:06:41 GMT 1, You'll want to check with an accountant. If the art is held as an investment (e.g. behind lock and key in a secure storage unit) then I assume you'd be liable to pay tax on any realised increase in value (when the piece is sold). If the art is hung and the owner can be considered to derive a personal benefit from it, then s/he is likely to be taxed on that benefit (I seem to remember one would be taxed on about 20% of the value of the piece every year). If it can be argued to be enjoyed by employees and clients alike, I've no idea what the situation is tax-wise. I'm no expert (no kidding, I can hear you mumble) but did ask for similar advice once and my accountant worked hard to dissuade me from buying, and hanging, a piece. For what it's worth ...
You'll want to check with an accountant. If the art is held as an investment (e.g. behind lock and key in a secure storage unit) then I assume you'd be liable to pay tax on any realised increase in value (when the piece is sold). If the art is hung and the owner can be considered to derive a personal benefit from it, then s/he is likely to be taxed on that benefit (I seem to remember one would be taxed on about 20% of the value of the piece every year). If it can be argued to be enjoyed by employees and clients alike, I've no idea what the situation is tax-wise. I'm no expert (no kidding, I can hear you mumble) but did ask for similar advice once and my accountant worked hard to dissuade me from buying, and hanging, a piece. For what it's worth ...
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Deleted
Posts โข 0
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January 1970
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Buying business art, by Deleted on May 9, 2019 20:08:51 GMT 1, There is a thread on this somewhere and some accountant types provided lots of good info. I was gonny buy some art via my Ltd Co a few years ago, spoke to my accountant and after what he told me I couldnt be arsed with the hassle. I waited for a dividend and bought it myself personally.
There is a thread on this somewhere and some accountant types provided lots of good info. I was gonny buy some art via my Ltd Co a few years ago, spoke to my accountant and after what he told me I couldnt be arsed with the hassle. I waited for a dividend and bought it myself personally.
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iamzero
Full Member
Posts โข 9,190
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May 2011
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Buying business art, by iamzero on May 9, 2019 20:13:44 GMT 1, Thanks for the help dudes. Much appreciated. Iโll tell him to stop being such a tool and buy it himself.
Thanks for the help dudes. Much appreciated. Iโll tell him to stop being such a tool and buy it himself.
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moron
Junior Member
Posts โข 2,711
Likes โข 1,050
September 2017
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Buying business art, by moron on May 16, 2019 21:08:04 GMT 1, When Saatchi and Saatchi had their ad agency. There were rumours that Charlie used the company's money to buy art by the likes of Hisrt and Emin etc which he owned personally anyway.
Something like Saatchi would hold a meeting and say, I think the company should buy this Hirst for 100K a million from himself that he paid 5K for. Making a nice big profit for himself.
When Saatchi and Saatchi had their ad agency. There were rumours that Charlie used the company's money to buy art by the likes of Hisrt and Emin etc which he owned personally anyway.
Something like Saatchi would hold a meeting and say, I think the company should buy this Hirst for 100K a million from himself that he paid 5K for. Making a nice big profit for himself.
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