I think the benefit, Kris, is that the rent charged to the business now reduces the taxable profits on that business, the client then declares the rental income as 'income from property' in his self assessment. This means there is no class 4 NI due on that portion of income.
This may also, with the correct planning in place, mean he can benefit from entrepreneurs relief on sale of the property (but without the correct planning the full amount of CGT at 28% could be payable instead of the more favourable 10%).
One partner gifted it to his children, one of which is a partner, said partner now effectively charges the business rent on his property. The question arose because the accountant pulled the partners portion of rent out of the rent nominal, and I wondered why this might be.
