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Where Taxpayers and Advisers Meet

Incorporation Relief

oceananic
Posts:1
Joined:Fri Jul 24, 2020 2:45 pm
Incorporation Relief

Postby oceananic » Fri Jul 24, 2020 4:40 pm

Good afternoon

I was wondering if anyone might be able to help me.
My siblings and i are looking to incorporate our BTL partnership.
I understand that as we all work within the partnership there should be no CGT or SDLT.

Once we are trading as a LTd company, am i then able to sell my shareholding..say in the next tax year.., to a new company, owned totally by me ?

Or would the CGT or SDLT relief from incorporating the partnership be clawed back by HMRC?
Would I be better off to wait 2 or 3 years to avoid claw back, or is that unnessacery?


Any help or guidance much appreciated.

AdamS93
Posts:268
Joined:Tue Sep 26, 2017 6:28 pm

Re: Incorporation Relief

Postby AdamS93 » Sat Jul 25, 2020 10:29 am

For incorporation relief to apply, set conditions have to be met. You have to have a 'business' so if you have just a handful of properties, it is very unlikely you will qualify.

If you claim incorporation relief, the last thing you will want to do is to sell/gift the shares as the base cost of the shares will be very low due to incorporation relief.

You NEED professional advice.

AdamS93
Posts:268
Joined:Tue Sep 26, 2017 6:28 pm

Re: Incorporation Relief

Postby AdamS93 » Sat Jul 25, 2020 10:30 am

That should read 'if you qualify for incorporation relief, rather than 'claim'.


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