Stamp Duty Exemption - Property Transfer to Company from Partnership

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

    #16
    Originally posted by Sean Hughes CTA View Post
    Jpkeates:
    1) for the SDLT exemption the partnership doesn't have to be managing a business. You are getting confused with the CGT relief (incorporation relief) which requires a business to be conducted
    Yes, I think I am.

    Thanks.
    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


      #17
      we currently own 6 properties jointly, on our tax returns we are taxed on a 99%/1% after submitting a letter a couple of years ago to the tax office. does that demonstrate a partnership? we want to keep and expand our portfolio and potentially hand it over to our children eventually. the 'limited liability' aspect appeals to me as though we keep put properties in good order, tested etc in line with legislation, reducing our personal liability might be an option we would pursue.

      doing it without paying stamp duty also has its appeal !!

      Comment


        #18
        Was it a form 17 you submitted?
        If so, that is helpful but if I were advising you I would suggest you make the partnership more formal to put the question of whether there is a partnership beyond doubt.

        Comment


          #19
          yes it was, how would I make it more formal? would that require another letter to the tax office or is there a specific form/process. I'm not in any rush but am strongly considering it. I realise I will need to take specific legal advise to progress it fully but if there are things I can put into place beforehand then it might ease the process,

          I do have an accountant but she is not a specialist property accountant

          Comment


            #20
            I would suggest notifying HMRC of the partnership. Getting a partnership UTR. Having a partnership agreement and a partnership bank account.

            Comment


              #21
              I have a somewhat similar situation. My brother and I own residential let property jointly in our names for some years and have an HMRC partnership UTR for partnership tax returns as well as a Partnership Mortgage Loan and Partnership Bank Account with the same bank for a couple of years.. Recently we have appointed an accountant and the accountant thinks that any new tenancy agreement should be in the name of the partnership as the landlord rather than the partners... Does anyone have a view?

              Comment


                #22
                I can see where they're coming from.
                One of the current clever ideas to avoid SDLT is to have the property business as a partnership and be a real business that the partners actually work in (rather than being a passive investment business).
                The argument is that you can then move the assets into a business by incorporation, which avoids the SDLT.

                That process seems untested and may not actually work, but it might.
                And there's probably not a downside (or at least one hasn't occurred to me in the last few minutes).
                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


                  #23
                  Both partners in the partnership would have to be working full time of 35 hours per week or atleast 20 hours per week each in the letting business ????.

                  Comment

                  Latest Activity

                  Collapse

                  • Banana Skin
                    Flashback1966
                    I feel I have messed up my life. Despite working hard, I have landed on a banana skin.

                    I bought a 3 bedroom house many years ago. It seemed like a nice area. Little did I know, nearby the local housing associations had housed the thugs like the Kray twins and their chums. It was a "problem...
                    17-07-2018, 15:22 PM
                  • Reply to Banana Skin
                    JamesHopeful
                    Flashback1996,

                    There is quite a bit which doesn't make sense to me about your post:
                    • Inner London always has had a mix of tenures and socio-economic classes living cheek-by-jowel with each other (in some ways it's one of the great things about it), and the the East End (I assume this is
                    ...
                    22-07-2018, 13:06 PM
                  • Bringing forward losses and phasing in Section 24: a self-assessment form headache
                    JamesHopeful
                    In 2017/18 I made a profit of £32,918 on my lettings, but I had a loss from the previous tax year of around £40,000 which, if brought forward, would both completely wipe out my tax liability for 2017/18 and leave me with a further loss of around £7,000 to bring forward to 2018/19. So far, so simple....
                    22-07-2018, 12:24 PM
                  • Reply to Banana Skin
                    Claymore
                    You will also get Letting Relief and Private Residence Relief and your personal Annual Allowance for CGT. Your bill maybe a lot less than you think.
                    19-07-2018, 23:10 PM
                  • Will I be OK when the new tac changes come in ?
                    craig2222
                    I currently earn £25000 from my job.I have 2 rental properties that bring in £12480 per year.I am thinking about buying another that would bring the total to £18720. £18720 plus £25000 is £43720. I'm I right in thinking as long as I am below the £46000 higher tax bracket I am OK and the new tax...
                    19-07-2018, 16:05 PM
                  • Reply to Will I be OK when the new tac changes come in ?
                    mariner
                    I think your assessed Tax Band is the key, not your Income, which can vary. eg Benefit in Kind, net profit from property etc
                    Govt can easily alter qualifying Income.
                    19-07-2018, 16:46 PM
                  • Lease Extension Subject to Taxation?
                    hmmlee
                    Hi there. I live in a Victorian property which has been divided into 5 flats.
                    Several years ago, three of the flat owners (including myself) purchased the freehold. The two remaining flat owners decided that they would not participate in the freehold purchase.
                    A company was formed for the...
                    17-07-2018, 11:10 AM
                  • Reply to Lease Extension Subject to Taxation?
                    Gordon999
                    Normally the freehold company will report the income received from lease extension as "annual profit" in its annual acounts which are produced after the year end.

                    The profit will be reported in the tax return and about 13 months later the company get a tax bill of around 20%....
                    18-07-2018, 15:43 PM
                  • Reply to Banana Skin
                    jpkeates
                    CGT is only 18% (28 If you earn a lot). You still get 82% of any increase in value.
                    Plus the rental income.
                    18-07-2018, 07:00 AM
                  • Reply to Banana Skin
                    Gordon999
                    If you quote some details : we can work out roughly the cgt.

                    When you bought the property and the price paid
                    Dates when you lived in the property.
                    Market value now .
                    17-07-2018, 19:26 PM
                  Working...
                  X