Gift of business property to property development company

[Damian]

I am considering forming a Property Development company and wish to claim gift relief on the transfer of my existing business premises to the Company. I assume that the limited company will treat this gifted property as stock in trade for redevelopment and be charged income tax on any subsequent disposal or part disposal as part of it's trade. My question is who if anyone pays CGT on the held over gain. Any help would be greatly appreciated. Thank you.

[Ian McTernan CTA]

Are you planning on redeveloping the business premises or will this be rented by you from the company?

If it is just to be held then it is not stock in trade but an investment.

You need to seek full professional advice on this before doing anything.

I would be happy to help.

Ian McTernan CTA
McTernan Associates Ltd
Chartered Tax Advisers
ian@imcternan.com

[Damian]

Thank you for replying.

I will be ceasing my existing business approximately a year after the transfer to concentrate on the property development aspect of the new limited Company. No rent will be charged to me by the company which will start to redevelop the property right away as part of the building is already surplus to my business requirements. I am an architect and require some time to complete existing contracts before my existing business can cease.

I trust this gives you a better picture.

Thanking you in anticipation

Damian