Pre owned assets charge

We are advising a family on the creation of a family investment company. Dad is gifting money to the children and then he alongside the children are subscribing for shares in a newco. The company will probably buy property and whilst its the intention this will be let on short term lets, the family may wish to use the property for the odd week.

Dad will be one of the directors as well as a minority shareholder. I have considered that occupation of the property could result in a benefit in kind charge, but I hadn’t considered a POA.

The dad will be gifting cash, which is potentially subject to the POA charge, however, he will own shares in the company that will own the property, which he may use. Does anyone have any thoughts as to why a POA charge would apply?

Claire Spinks
British Taxpayers