Hi All, not 100% if this is right place but just looking for any thoughts on a fairly complex scenario. I'm a part qualified accountant so haven't seen the need to use accountant for tax affairs to date (been letting out property for 3 years now) - but considering it now.
Scenario is I planned to sell a BTL property from my personal name to my limited company on 1/12/19. I made my tenants aware of this upcoming change and asked them the start paying the rent into my business account from this date. I also changed some of the direct debits into my business account on this date. I didn't change the mortgage immediately as I thought it was about to be paid off.
For various reasons the transaction was delayed by 3 months (mainly due to solicitors) and didn't actually go through until 1/3/20. My question is how to treat the income/expenditure in this period - should it be through my personal name or my property business. Most of the actual transactions were through my business account (except the mortgage) but legally my personal named owned the property in this period. It is more tax efficient to go through my company so I would prefer this if possible - but clearly I want to use the correct approach.
I wondered about the idea of letting the property from myself to my business for this 3 month period (at a rent similar to the mortgage) - as this would deal with the tax problems in my personal name (income/expenditure would offset) and put the issue into my business (which would have the tenant income in & the bills). However clearly I am wondering if this is an acceptable thing to do and isn't any form of tax evasion etc.
I may have to consult an formal property tax expert - but thought I'd ask on here in case anyone could help. Thanks in advance if you have any ideas!!
- Home
-
Tax News
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice and Methods
- Professionals in Practice & Industry
- General
- TaxationWeb
-
Tax Articles
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings and Investments, Pensions and Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice & Methods
- Professionals in Practice & Industry
- General
- Tax Tips
-
Tax Forum
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations and Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practices & Methods
- Professionals in Practice & Industry
- General
- Tax Jobs
- Get in Touch