If you are transferring multiple properties (20+) from a partnership to a limited company, at what cost to introduce the properties into the limited company. If there is no profit or loss, would it just be at market value at the point of transfer? Also, where would the other side of this transaction go? Would the amount sit on the balance sheeet ?
I i have a property brought inside LTD already, is that adding to the 20 hours weekly work on the property businesses to incorporate my other two properties? As i have totally less than 5.
@@johnporcella2375..and what if I transfer a part of the property ownership to my company, is that considerate partnership to later fully incorporate without CGT and stamp duty?
Hi there, Yes, you would pay Capital Gains Tax if transferring ownership of the property to a limited company. However, you may be entitled to private residency relief. The company would also pay Stamp Duty and there are also legal fees to consider. We'd recommend getting 121 tax advice before you incorporate. Head to provestor.co.uk for more info on our property tax consultations.
If you have lived in it from the start to the transfer, then you would be entitled to PPR (Principal Private Residence) relief thereny likely eliminating any CGT liability.
Hi can I ask I had a portfolio of 5 running as a partnership for 3 plus years but sold 2 of my properties last year. Can I still transfer 3 of my btl into a ltd company
Hi Matt, Thanks for your question. If you're looking at getting s162 incorporation relief and SDLT relief as part of a business transfer you may be able to depending on your personal circumstance. As part of the incorporation relief you need to be able to demonstrate you're moving across a 'business'. This becomes more difficult when you have less properties in your portfolio.
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