This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

4 Properties moved to Ltd Company

Nat2321302
Posts:7
Joined:Wed Nov 19, 2014 12:05 am
4 Properties moved to Ltd Company

Postby Nat2321302 » Sun Feb 21, 2016 10:51 pm

Hi all,

I have put my question in Company Tax and now realised there is a separate forum for property taxes so I am duplicating the same question and I hope someone can answer.

I have this question - if 4 properties are transferred from personal name to a Limited company where the transfer is also the director and 100% shareholder in that company- then what are the tax implication for both the person and for the company at the point of transfer?

I understand that the person has to pay CGT. Does the company pay Stamp duty for the 4 property acquisition? Anything other tax or complication involved in this transaction ?

On the other hand if the company business activity is buying and selling property, can it deduct the stamp duty that it paid when it acquired the property and when can the company deduct this expenses?

Thanks

GlobalTaxAdviser
Posts:633
Joined:Fri Dec 05, 2014 1:18 am

Re: 4 Properties moved to Ltd Company

Postby GlobalTaxAdviser » Mon Feb 22, 2016 1:05 pm

Hi

While many landlords are transferring their property portfolio into a Limited company following the budget changes

I would suggest you weigh the pros and cons of transferring the property into a Limited company and crunch some number if it is actually going to save you money

There maybe ways of getting round the CGT and Stamp Duty charges but require careful consideration and tax planning.

The extra stamp duty charges would apply to Limited companies and is not tax deductible but would be included in the Calculation when selling the property

Kind Regards

GTA


Return to “Property Taxation”