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Where Taxpayers and Advisers Meet

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by AdamS93
Mon Sep 14, 2020 9:26 pm
Forum: Property Taxation
Topic: Transferring some properties to a limited company
Replies: 4
Views: 530

Re: Transferring some properties to a limited company

Your accountant is referring to incorporation relief to avoid the CGT on transfer.

I would suggest that 3 BTL’s would struggle to qualify for incorporation relief in the first place.

As mentioned above, the company would pay 3% SDLT and you would pay CGT on the sale.
by AdamS93
Sat Aug 01, 2020 8:41 am
Forum: Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Topic: Sale of property and continued living rent free.
Replies: 1
Views: 383

Re: Sale of property and continued living rent free.

Yes, there is something wrong with the 'scheme'. It is probably caught by the pre-owned asset tax legislation. What other assets do they have? If it is just their main residence which is worth £495k, then it is unlikely there will be any IHT due anyway. IHT is fairly easy to reduce without elaborate...
by AdamS93
Fri Jul 31, 2020 2:10 pm
Forum: Property Taxation
Topic: Main Residence nomination
Replies: 5
Views: 638

Re: Main Residence nomination

If you let out any of your properties (whilst you are not living in it), then it is not your PPR and you cannot nominate it as such. The PPR nomination is designed for individuals who have two properties, both of which they use themselves such as a flat in London where they stay during the week, and...
by AdamS93
Fri Jul 31, 2020 2:06 pm
Forum: Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Topic: PET (rental property) and IHT
Replies: 3
Views: 583

Re: PET (rental property) and IHT

You need to look at the two transactions separately. Firstly, you will need to use the market value when the property was gifted to work out the PET value. This would use up his NRB first. Any remaining value will be taxed at 40% IHT BUT taper relief reduced the IHT due by 20% giving a marginal rate...
by AdamS93
Sun Jul 26, 2020 8:58 am
Forum: Savings & Investments, Pensions & Retirement
Topic: SIPP taxation
Replies: 1
Views: 691

Re: SIPP taxation

It is calculated using percentages. If you use up 100% of your lifetime allowance, you will have 0% of it left when the SIPP crystallises. So even if the lifetime allowance increases 0% of £1.5m is still £0 for example. It is a nice problem to have, but there is very little you can do (if anything) ...
by AdamS93
Sat Jul 25, 2020 10:30 am
Forum: Capital Gains Tax, CGT
Topic: Incorporation Relief
Replies: 2
Views: 679

Re: Incorporation Relief

That should read 'if you qualify for incorporation relief, rather than 'claim'.
by AdamS93
Sat Jul 25, 2020 10:29 am
Forum: Capital Gains Tax, CGT
Topic: Incorporation Relief
Replies: 2
Views: 679

Re: Incorporation Relief

For incorporation relief to apply, set conditions have to be met. You have to have a 'business' so if you have just a handful of properties, it is very unlikely you will qualify. If you claim incorporation relief, the last thing you will want to do is to sell/gift the shares as the base cost of the ...
by AdamS93
Sat Jul 25, 2020 10:26 am
Forum: Company Taxation
Topic: R&D tax credit for majority costs?
Replies: 1
Views: 692

Re: R&D tax credit for majority costs?

On the basis on the information you have provided, even mystic meg couldn't give you an answer.
by AdamS93
Mon Jul 13, 2020 6:41 pm
Forum: Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Topic: Gift of part of second house to adult child
Replies: 1
Views: 404

Re: Gift of part of second house to adult child

If you are buying cash, you would be better of gifting the cash to son (if you can trust him) to purchase the property. This will save legal fees and if a first time buyer, there will be no SDLT surcharge for your son (there would be for you - presuming you have another property). The gift (whether ...
by AdamS93
Sat Feb 29, 2020 1:45 pm
Forum: Property Taxation
Topic: Withdrawing Funds when a Company owes Money to the Director
Replies: 2
Views: 783

Re: Withdrawing Funds when a Company owes Money to the Director

As above, repayment of loans is not an expense as on the contrary the receipt of a loan is not taxable inccome.

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