Group ownership through company: useful info

[FNG]

We sometimes discuss the pros and cons of owning an aircraft through a limited company. Sometimes people express concern about the the Companies House requirements/company secretarial duties involved. In fact, it's all fairly simple. I landed the Company Secretary job in my group because I'm a lawyer, although a litigator and not a company law or taxation specialist. At least I know where to look the stuff up when I need to.

Here's a link to a website offering useful general advice on the formalities of running a small company owning an asset.

NB: usual caveats: there is no substitute for taking expert advice on particular situations. I don't warrant that the site linked to is correct in every particular. The Companies House website also offers similar guidance, downloads of forms etc.

http://www.companyregistrations.co.uk/directors-and-secretaries-guide.asp

http://www.companieshouse.gov.uk/

[IO540]

What is the worst case liability of a Co Secy generally, and in an aviation context specifically? I don't think a Co Secy has any significant personal liability, provided accounts and other papers are filed on time. Most one man bands get their mum/granny etc to do it :O

[FNG]

Directors can incur fines for failure to file accounts and so forth, but ordinarily Companies House contents itself with fixed scale penalties imposed on the company (£100 for late accounts, and so on). You can fill large and dull books with discussions of the duties and liabilities of company officers, but little of this is of real relevance to bog standard off the shelf hundred quid companies owning one aeroplane.

[IO540]

I am not aware of any real issues with owning a plane via a limited company. Companies House don't really care so long as the papers turn up with a cheque for the right amount.

The potential issues are to do with how the Inland Revenue and/or Customs & Excise view the operation. These can be debated pretty well interminably, not least because different tax inspectors around the UK see things very differently, and if somebody is getting what they regard as a fair treatment, they are sure not going to be advertising it here :O