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Where Taxpayers and Advisers Meet

TRansferring property ownership to parent company from subsidiary

zcsccg1
Posts: 2
Joined: Thu May 21, 2020 11:37 am

TRansferring property ownership to parent company from subsidiary

Postby zcsccg1 » Thu May 21, 2020 11:49 am

Hi all,

Looking for some advice on this as what I've been told is somewhat contradictory.....

I have two companies, one a parent or holding company of a subsidiary.

The subsidiary company currently has ownership of a property which I now wish to transfer to the parent/holding company. No mortgages or finance are involved.

The question is whether SDLT is payable on the transfer? The property value is 180k and it was bought for the same 2 years ago.

Chris

maths
Posts: 7895
Joined: Wed Aug 06, 2008 3:25 pm

Re: TRansferring property ownership to parent company from subsidiary

Postby maths » Thu May 21, 2020 2:53 pm

I believe that no SDLT arises.[ FA 2003 Sch 7]

This assumes that one company is a 75% subsidiary of the other (or both 75% subsidiaries of another).

Note possible clawback provisions Sch 7 para 3].

zcsccg1
Posts: 2
Joined: Thu May 21, 2020 11:37 am

Re: TRansferring property ownership to parent company from subsidiary

Postby zcsccg1 » Fri May 22, 2020 1:58 pm

Thank you!


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