Advice please selling to limited company

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Advice please selling to limited company

    I purchased a small fire damaged storage garage/unit (non residential) last year for £45,000, it was funded via personal savings and personal finance which my wife and I took out, so no outstanding mortgage.

    I now wish to set up my own limited company and sell the unit to it. At some time in the near future, I want to repair the unit and rent it out.

    There are not CGT or Stamp duty implications, as the property has not risen in value. I paid well over the odds last year via sealed bids, as it is substantially fire damaged and has poor access. Absolutely no works have been carried out on the property since the purchase.

    Please could someone be kind enough to give me some idea how the transaction would work. The information on Google seems to point towards me gifting the property to the limited company, however the company would then owe me £40,000 via a directors loan?

    Would that require the solicitor to draw up a contract between myself and my Limited company at the the point of sale? Apologies this is all new to me, thank you for your patience.

    #2
    Why do you want to sell the property to a limited company?
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

    Comment


      #3
      This is relatively straight forward, you need a solicitor to deal with the Sale & Purchase of the Property once you have created ideally an SPV company, but before you do this and as per my past postings you should discuss everything with a qualified accountant not a Bookkeeper, you will then understand all the costs associated both now and in the future.
      The only area i am unsure of is whether you are required to give the monies into the SPV which in turn pays this back to you as the vendor but this will be clarified by one or both entities I have identified.

      Comment


        #4
        Originally posted by jpkeates View Post
        Why do you want to sell the property to a limited company?
        There are 3 other units located within the same yard, the owner of which has approached me and has given me first refusal to purchase them, later this year as he is retiring.

        Therefore, I intend to set up a limited company which will own the whole site. Both my wife and I work with good jobs, so we would not need access to the rent. Hence the limited company route would work out the most beneficial in the longterm.

        Comment


          #5
          Originally posted by Stables View Post
          Both my wife and I work with good jobs, so we would not need access to the rent. Hence the limited company route would work out the most beneficial in the longterm.
          Obviously I am not au fait with your situation, but you might benefit from talking to a decent financial advisor if you haven't already done so.

          If you could get the property into a pension scheme (some kind of SIPP) the income and any asset growth might be tax effective. Getting the business to contribute to your pension anyway.

          If the properties and asset growth and accumulated rent are locked into a company you will have paid corporation tax already, so you'll need a sensible plan to extract it without being clobbered for tax personally, as otherwise the exercise may not work out as you hope.
          When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
          Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

          Comment


            #6
            I suggest you visit 2 or 3 local shops ( for bookkeeping records and VAT returns for small local businesses ) and ask for quote for supply of "company ltd" and for preparing the annual return to Companies House and ask if the shop can do the transfer of property to company.

            Comment


              #7
              if the sign a TR1 to transfer the property into a limited company the consideration (ie value of the property) is owed to you. It would be possible to grant a mortgage over the property in your favour. There are advantages of owning property in a limited liability company especially in relation to personal liability. Do insure the property under a property owners policy to get cover for someone suffering injury. Unfortunately as things stand, in the UK even someone breaking in could claim against you if injured! Crazy but true

              Comment

              Latest Activity

              Collapse

              Working...
              X