SDLT on transfer of business property to pship

[msdhoni]

Hi All i need some advice,

i currently run my business which is a car garage and i am looking to transfer it into a partnership which includes myself and my 2 brothers. I have owned the property since 1991 and have run the business with my brothers as a partnership ever since however we are now looking to tfr this into the partnership. what sdlt and cgt issues arise?

there is no consideration payable and there is no mortgage but will i have to pay cgt? i bought the property for 200k and it has now been valued at 700k.... what stamp duty issues arise, is it payable at 4% ?

hope somebody can help!

thanks

[AvocadoK]

Hello
There is no SDLT charge (because all the partners comprise the transferor and people connected with the transferor).
There should be no CGT charge either, as you can make a hold over claim in respect of the gain.
Regards
AK

[msdhoni]

Thanks AK is there a relief i need to use for this or should my solicitor be able to do the transfer ???

If i was to eventually put the property into the company would there then be stamp duty payable??

[AvocadoK]

The solicitor should be able to complete any SDLT forms required.
For the capital gain, either ask an accountant to do the holdover, or search HMRC website for HS295.
On incorporating the partnership into a co, there is a further relief to avoid SDLT.