IO540
I think that the tax man has a very good idea if what is "real trading" and also has a good idea of what is a tax fiddle.
As I said above I lease aircraft to a flying club, the club has day to day control of the aircraft, the only time that I fly the aircraft is to and from the maintenance base. I wanted to use one of the aircraft to do a rating renewal so in this case I rented the aircraft from the club.
I find it very hard to find any way that BIK taxation could apply in this case, when the business was started the VAT people had a very hard look at my business. It was quite clear that they suspected the whole thing was set up as some sort of tax fiddle but very quickly came to the conclusion that this was not so.
I have had no further visits from the tax or VAT people but may be this is because the lady from the VAT found the airfield "rather noisy".