Holding a business jet in a UK limited company (a 'holdco' or SPV) is one of the most common and tax-efficient ownership structures for high-value aircraft. Lenders are familiar with this approach and have well-established documentation and security requirements for company-owned jets.
Why use a holding company?
Holding the aircraft in a separate company limits personal liability, simplifies insurance arrangements, provides a clear legal owner for CAA registration purposes, and may provide tax advantages (depending on use, depreciation treatment and the director/shareholder's overall tax position).
Lender requirements for holding company borrowers
Lenders typically require: personal guarantees from the directors or shareholders; full details of the company's financial position; the company's articles of association and certificate of incorporation; and a debenture (floating charge) over the company in addition to the fixed charge over the aircraft.
SPV vs trading company ownership
A dedicated SPV (set up solely to own the aircraft) is cleaner from a lender's perspective as there are no other creditors or claims on the company. A trading company owning the aircraft alongside a business introduces more complex risk; some lenders prefer to see the aircraft in a standalone SPV.
Directors' guarantees
Almost all lenders require personal guarantees from the directors or major shareholders of the holding company. The guarantee is unlimited unless specifically capped. If you have co-directors, each may need to guarantee proportionate to their shareholding.