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Should a syndicate own via a limited company, or directly?

In general, what is the main difference in costs, maintenance, etc; pros and cons, for example in the UK for a G-reg?
I heard that the syndicate is an unlimited company (is that true?).
Also that there could be no more than 20 syndicate members (and could be more than 20 company owners).

Thanks!

EGTR

Do you mean sole owner versus syndicate?

A sole owner, or a syndicate, can be a limited company.

Administrator
Shoreham EGKA, United Kingdom

I mean a limited company that is owned by many people owns an aircraft vs a syndicate.
What is the difference if any?

EGTR

OK; I changed the title

Initially, worth a read e.g. here and a search on

BIK

or

“benefit in kind”

which are relevant to the UK.

Administrator
Shoreham EGKA, United Kingdom

I can’t really comment on tax (personal or VAT), but on will comment on the difference in liability.

  • Any liability arising from the members’ own negligence (e.g. as a pilot) will be the same. A Limited company does not protect you from being successfully sued if you are negligent and do damage, or injure.kill someone.
  • In the limited company case, any liability arising from operating the aircraft is limited to the company’s assets (assuming all shares are paid up)
  • In the joint ownership case, any liability arising from operating the aircraft is “jointly and severally” the liability of the owners, so the other party can just turn to the richest and get the money from him, who then needs to deal with the other owners.

So, in a nutshell, the limited company protects you from any liability as an operator which is not covered by insurance and exceeds the value of the company asset (the aircraft).

Last Edited by Cobalt at 25 Aug 18:48
Biggin Hill

Peter, so if I understood it correctly, the pilots are not going to save anything if the a/c is owned through a company.
And it does provide liability protection, right? I mean if the a/c causes some loss, then liability cannot be transferred to all owners?
And what about the maintenance regime? No difference? Any extract checks required?

EGTR

arj1 wrote:

And what about the maintenance regime? No difference? Any extract checks required?

For EASA aircraft, at least, the maintenance regime is determined by the kind of operation, not the kind of owner.

ESKC (Uppsala/Sundbro), Sweden

Airborne_Again wrote:

For EASA aircraft, at least, the maintenance regime is determined by the kind of operation, not the kind of owner.

So, if aircraft is used for private flying, then there is no difference?

EGTR

arj1 wrote:

So, if aircraft is used for private flying, then there is no difference?

There shouldn’t be, no.

ESKC (Uppsala/Sundbro), Sweden

The UK syndicate has a max of 20 members. Maintenance is unaffected.
But there are advantages. Hangarage, capital tied up, maintenance cost, and insurance are spread. There is little extra charge for insurance.
There can be advantages in being able to call on others to help.
I’ve been in a Jodel DR1050 syndicate for 29+ years, happily.
I’m also 75% owner in a two person Bolkow Junior syndicate, which formed 14 months ago as a four group, and was very toxic until I bought two out. Lawyer involved, one guy got so uptight he was sacked. Only 0.5 hours total flown in 9 months by the two I bought out.

Maoraigh
EGPE, United Kingdom
13 Posts
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