Leasing via company for family members

[occasionalranter]

I own and run a longstanding profitable trading company. Took an EV company lease for myself 2 months ago and the tax/maths makes it a no-brainer to do the same for my spouse, who is also a director with very occasional involvement. Neither of us takes much salary, we could easily justify higher overall salary/pension contributions/BIKs for the value we provide. So far, so good, unlikely to annoy HMRC I think.

But how far can you take it ? If I lease a car via the business which I then make available mostly/exclusively to my adult son, who doesn't work for the business, does HMRC refuse corporation tax relief and/or do other nasty tax consequences flow ? Or does HMRC just treat it as a BIK to me, and tax it like my own lease ? Preferably the latter.

(Yes, I have an accountant and I will be asking him, but I thought it was kind of an interesting question and haven't seen it answered elsewhere, so wondered if any of the other powerfully built company directors of PH had looked into it )

[loafer123]

I think you would just pay the BIK on 100% of the value (as no business use).

https://www.aspenwaite.co.uk/challenges/topical-ta...

[MaxFromage]

As long as you pay the BIK, you can have as many company cars as you like. It doesn't matter what you do with them.

[pacenotes]

Hire him as the chief marketing officer to help run your Facebook page....

It only needs a few hours a month to be on the books.

[OllyAitch]

If the car is mostly for your son, HMRC will view it as a taxable benefit in kind to you, not him. So you get the BIK charge, the company still deducts lease costs.