Transferring a Property from personal to own Ltd Company

[Y L EST]

HI,

I am sure this subject has been discussed several times, but to confirm the same to my story, please can you help me with this.

I own my house in London for about 35 years, I have recently converted it into 2 flats, with Planning Permission, where the bottom part is for my own accommodation and the upper part is rented by a family.

Now, I took out a Mortgage to cover part of the costs for the conversion. after a couple of year submitting my self assessment paying high bill of taxes as the rental income is putting my annual income above the threshold I decided to legally register my upper flat to my Ltd Property company, which includes a creation of 1 Freehold with 2 Leaseholds.

My question, as I am to Gift my Company this flat, I suppose SDLT does not apply in this case. but, where a Mortgage is on the property, you do need to pay SDLT. So, let's say that the Mortgagor's charge will be kept only on the bottom flat, removing any charge from the upper flat, will this remove the SDLT bill?

than comes the second question, related to a different department, once my Company benefits from this Gift, will the Company pay CGT (Capital Gain Tax) on the Property?

[pawncob]

Take advice before you gift anything.

[bd6759]

SDLT is payable. CGT is payable.

Take advice about this whole venture, starting with the lease.