Land transfer from Ltd Co to individual

[mp2016]

Hi

I am the sole director and shareholder of a limited company.

The company ceased trading and it was just before the 6 years time limit i realised the company had some land that had been bought still in its name.

I had the company reinstated ... just in time before it went Bona Vacantia and the land would have gone to the crown.

The land cost 60k and is valued at 60k from 2 independent valuations.

I want to transfer the land from the company to myself, as its value is only 60k there is no stamp duty due.

What is the best way for me to do this, as the resurrected company does not have a bank account, and i don't particularity want to go through the process of opening one for this one transaction, after which the company will be dissolved.

Can i transfer the land to myself at 60k, and not undertake the movement of money, as i intend to pay tax on the money as income tax / dividends?

Any other suggestions as to how best to resolve this?

Thanks in advance.

[bd6759]

Just give the land to yourself. It will be a distribution, and you will pay tax as if it were a dividend.

[mp2016]

Would i have to pay the solicitor the 60k and then they send it back to me as the director of the company (company does not have a bank account)

Or could it be a cashless transaction?

[bd6759]

You are not buying the property. The company is giving to you.

[mp2016]

So on the land registry form the amount would be "0" zero or 60K?

Thanks in advance again

[TaxAdviser2018]

One option you may wish to consider is to formally liquidate the company with the capital distribution on a liquidation being tax under the capital gains tax provision. There is anti-avoidance legislation that will tax the distribution on you as income should you commence the same or similar activity within two years of the liquidation where the relevant conditions are satisfied.