# Domicilium Ltd (06605201)

> Why UK company 06605201 went into administration, from the administrators' statement filed at Companies House, by companydig. Interactive version: https://companydig.co.uk/company/06605201

- **Status:** Administration ended
- **Administration began:** 2018-02-27
- **Administrators:** James Kennedy
- **Administrators' firm:** James B Kennedy & Co
- **Formerly:** Carl Fisher Partnership Limited
- **Incorporated:** 2008-05-29
- **Location:** Burnley
- **Industry:** 41100 Development of building projects

## Why it went into administration

- Property / lease costs
- HMRC / tax arrears
- Loss-making contracts / project overruns
- Regulatory change or action

## From the administrators' statement

The Company was incorporated on 29" May 2008. Statutory information on the Company is included within Appendix 1

Domicilium Ltd. (Domicilium) is the wholly owned subsidiary company of Diamond Global Trading and Investments Ltd. (Diamond). The company was set-up to develop a Student Accommodation facility in Burnley. An old property was purchased and redeveloped to provide 95 units designed for self-contained accommodation for students. The business plan called for the units to be sold to investors who would enter into a lease back to the company. The company would then supervise the renting out of the accommodation paying a fixed rental to the owners. The company was to make a profit based on the difference between the income from students less the expenses of operating the business and paying the rent to the owners. In addition, the arrangement called for the payment of a ‘ground rent” by the owners back to Domicilium of £300 pa. The rent which was set at £4,450 pa was to be paid monthly in arrears and was payable from the date on which the contract to purchase was completed. All of the owners paid in 2014-2016 and therefore rank as creditors in respect of the rent accruing due since then up to the date of my appointment or interest on their deposit.

Monies have been received in respect of 58 units sold to date at prices of c£45,000. In addition, 29 units were sold to Burnley Hall LLP, a Limited Liability Parmership set-up for the purposes of reducing the tax liability of the partners. They entered into a complex agreement with Domicilium and the parent company under which they were to participate in the development of the project on the assumption that they would obtain a tax benefit. In practice however, it appears that the tax benefit was not possible and Burnley Hall LLP have attempted to exercise their right under the original contract to cancel and are seeking repayment of the monies already advanced. My understanding is that the original agreement called for them to introduce funds of £2,361,788 of which £830,000 has been paid. Currently they have sued Domicilium Ltd and Diamond Global Trading Investments Ltd for £830,000 plus costs and interest making a total amount of approximately £1.1 million. At this time a lack of funds has prevented me from obtaining independent advice on the precise contractual relationship and the implications and I am relying on the assertions of the Directors and of the legal representatives …

Statement of proposals: https://find-and-update.company-information.service.gov.uk/company/06605201/filing-history/MzIxNjc4NDg4MmFkaXF6a2N4/document?format=pdf&download=0
Companies House register: https://find-and-update.company-information.service.gov.uk/company/06605201

Contains public sector information from Companies House, licensed under the Open Government Licence v3.0.