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Where Taxpayers and Advisers Meet

Gifting BTL to a company

jigjay
Posts:9
Joined:Mon Nov 09, 2015 11:10 pm
Re: Gifting BTL to a company

Postby jigjay » Thu Aug 31, 2017 5:52 pm

The definition of "connected" is extremely wide.

However, assuming that the donor of the property and the company are not connected then no SDLT is payable.

Yes, a property can be left by will to a company.

Thank you for clearing that up Maths.

So if the Donor (my mother) , is gifting her fully owned property to a company of which her adult son and his spouse are Directors/Shareholders, and the Donor is not going to be a director or shareholder, would SDLT be payable?

Many Thanks

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Gifting BTL to a company

Postby maths » Thu Aug 31, 2017 7:19 pm

would SDLT be payable?

Yes, SDLT payable on the higher of chargeable consideration (nil if a gift) OR market value.

AnthonyR
Posts:322
Joined:Wed Feb 08, 2017 2:33 pm

Re: Gifting BTL to a company

Postby AnthonyR » Thu Sep 07, 2017 8:36 am

In this situation, you are better off selling the property into the company for a loan account equal to the property value.

SDLT is chargeable in any event and you will receive the properties at market value (whether on gift or death) so no CGT is likely to be payable (by you).

As to whether you should put it into the company... if you are going to gear up heavily and considerably grow this into a portfolio then it's an option, if not then you may be better holding personally - you'll need to consider your circumstances.
Anthony Rogers LLB CTA TEP
Fusion Partners LLP
anthony@fusionpartners.co.uk


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