Transfer of Residential Property to Company - Directors Loan Account
Postby businessmind » Thu Oct 13, 2016 2:28 pm
I personally own a number of residential properties outright (without mortgages) which I let out. I am looking at transferring these into a new company in my sole ownership. I appreciate the transaction would have to be at market value and that I will pay CGT on the sale and the company will pay stamp duty on the purchase. The question is, can I create a directors loan on the balance sheet of the company equivalent to the value of the properties at the time of transfer, plus any cash I have loaned the company to complete the transaction? I understand I would then be able to repay this from the company over time without incurring an income tax charge (of course the company would pay corporation tax on it's earnings).