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Where Taxpayers and Advisers Meet

Moving Rental Properties to Limited Company

Expat1
Posts:28
Joined:Wed Jan 26, 2022 1:42 pm
Moving Rental Properties to Limited Company

Postby Expat1 » Tue Mar 15, 2022 11:16 pm

Hi everyone.

Hope your all well.

I have a number of rentals properties that I bought a long time ago and I’d like to move them to a new limited company so I can benefit from the 19% business tax. The value of the properties haven’t increased a huge amount. How should I go about this?

Thanks

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Moving Rental Properties to Limited Company

Postby bd6759 » Thu Mar 17, 2022 9:29 pm

You need to sell them to your company.

Expat1
Posts:28
Joined:Wed Jan 26, 2022 1:42 pm

Re: Moving Rental Properties to Limited Company

Postby Expat1 » Thu Mar 17, 2022 9:38 pm

Thanks. Can they be sold at any price? Any implications with whatever price I sell them at? For instance selling them for small sum like £1000 each?
Appreciate you replying.

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Moving Rental Properties to Limited Company

Postby bd6759 » Thu Mar 17, 2022 11:53 pm

You can sell them for whatever price you want.

For capital gains tax you will be treated as disposing of them at market value. The gain will be calculated using the market value.

You will also need to pay SDLT (or The Scottish or Welsh equivalent) based on the market value, including the second dwelling supplement).

Expat1
Posts:28
Joined:Wed Jan 26, 2022 1:42 pm

Re: Moving Rental Properties to Limited Company

Postby Expat1 » Fri Mar 18, 2022 9:00 am

Thanks bd6759.


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