Hi
After a bit of advice please. I inherited a flat a couple of years ago and decided to keep it as a rental property. I actually inherited the leasehold for the flat and the freehold for the building (it's an old house converted into 2 flats). I needed to get a mortgage on the property but could get one (without very high costs) if I owned both the freehold and the leasehold. So I set up a limited company to own the freehold, with me being the sole director.
I am finding the reporting obligations for the limited company a bit of a pain so would like to simplify things, hopefully by transferring the freehold to my wife. But I don't want to incur any tax in doing so.
I spoke to a surveyor about the freehold and he said it was only worth a couple of thousand. I understand that the company can't gift the freehold to her , as she would be liable for income tax. So would she be able to buy it for, say, £2,000? This would go to a bank account in the name of the limited company, and I could then pay that to myself by way of a dividend. This would be within the dividend allowance so no tax liable I think. The company would then be closed down.
Am I missing anything or would this work? Would there be any costs or taxes in addition to the costs of the actual transfer? Shouldn't be any stamp duty payable on a transaction of that size.
Thanks
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