Tax implications of transferring private ownership of house 2company

[sue dunn]

Presently I own a property in Bournemouth outright,but I would like to transfer the title deeds into the name of my company.Currently the house in on the market -'for sale' however I have a variety of reasons to blurr ownership and transferring to my comapny would be an option.Nevertheless I am concerned that there would be tax ramifications if I take the money from the sale of the house into the company and then re-sell the house on behalf of the company -can anyone help please? -sue

[accountant@uktaxshop]

Sue,

If this property is your main residence, there are no tax implications for making a sale on the open market. If this is rented out or a second home there are issues to consider, but you may not need to pay any CGT.

Exactly the same things apply to a transfer into a company. The only new implication is stamp duty, which (I am 90% sure, but I would have to check) applies on the transfer. The company would normally acquire the house at the deemed open market value, and therefore no profit would arise on the sale.

I donÂ’t know what your are really trying to achieve with this transaction Sue. I would be happy to take a call from you if you wish to explain further, and need some help planning the transaction.

James Smith
Chartered Accountant
UKTaxShop.co.uk
01284 764436

[Ian McTernan CTA]

There may also be problems if the company is curently a trading company, or is it going to be a newco?

You may not have to pay stamp duty dependent upon the price paid for the property in the transfer document into the company, as this price can be different from market value.

We need more details to answer the query fully.

Ian McTernan CTA
McTernan Associates Ltd
ian@imcternan.com