Here is a simple scenario:
You want a yacht, or you want a villa, or narrowboat, but you dont want to pay massive amounts of income tax on drawing the money out of your company needed to buy these items. Unfortunatley it is the company that has the money.
Without getting into the whole business of the tax efficient extraction of funds from companies, there is one possible option, which is to get the company to purchase the vessel concerned.
The company can get tax relief from this expense providing you can show a business purpose. For example, supposing you have a number of staff who who you feel it would motivate to allow them a week or so's sailing in the Mediterranean (Grand Union Canal). If this is a reasonable thing to do in your sort of business, you should be able to claim capitol allowances on the cost of the boat. Similarily, if the villa, boat, makes a loss because the amount staff members pay is effectivley subsidised, that loss should be treated as an allowable cost for the company against trading income.
When purchaising the items you will have a VAT invoice againts which you will claim back the VAT. When you then sell the item you will of course have to add VAT to the sale price and repay that to customs and excise.
Of course we use our boat as the staff canteen, and our staff love it.
That reminds me I must send the Inland Revenue a thank-you card soon.
Mark.