Afternoon All,
After much help from reading this forum I finally have question.
I am just in the process of completing the transfer of my BTL into a ltd company.
My solicitor has settled my personal mortgage and then taken out the new mortgage in the name of the Ltd Company. However I have received conflicting advice from the solicitor and my accountant.
Solicitor is saying SDLT transfer value should equate to the value of the mortgage which has been redeemed. (in this case a value below SDLT threshold) And therefore pay no SDLT
Accountant is saying SDLT transfer value should equate to market value of the property.
Where I'm happy to avoid paying SDLT, I have budget the (rather large) amount, but Im concerned with a knock on the door from Mr HMRC at some point.
So, who is right... Solicitor or Accountant?
Thanks
AJ1
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No CGT as I lived in the property for a fair amount of time myself. Thanks, SDLT paid. Now in a Ltd company. Thanks for all advice. -
This is not a transfer but a sale and purchase , On a personal basis there is the issue of CGT and for the Ltd co it is unfortunately a case where SDLT becomes payable . .Leave a comment:
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I assume you have good reasons for transfer to a ltd company that far outweigh other issues? have you considered establishing a partnership and THEN moving to a ltd company? the reason I ask is because I am also considering it and will be booking an appointment with a recommended advisor in the near future.
my reasons are purely to plan for inheritance tax (though we all know rules change as time progresses) and potentially reduced personal liabilityLeave a comment:
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As far as I know the accountant is right. This is a sale to a separate party (the company) of the whole. It is NOT a gift of the whole to the company (as in a gift to another party) in which case the solicitor advice would apply. A gift without a mortgage to a person would have no SDLT. I doubt you can gift to a company (which would defeat the whole point of the exercise even if you could?).
But more importantly, you have considered the CGT implications --- I hope...... SDLT may pale into insignificance.Leave a comment:
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Thank you, solicitors just confirmed its market value... damm. Never mind. Although I budgeted the SDLT anyway. Thank you again.Leave a comment:
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Whichever you go with, make sure they both have adequate professional indemnity insurance in place.
Market value. (s53 Finance Act 2003)Leave a comment:
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Hubby and I have a couple of BTL properties.
In October 2016 we sold one BTL house and paid CGT
In January 2019, we sold our residential house and moved into a house we built next door.
However, due to my elderly mother being taken ill, we have decided to now move...15-06-2019, 06:59 AM -
Reply to Selling too many props too soon???If there is potentially a huge capital gain on current house if sold and you want to have it covered as your PPR , then perhaps you should consider staying for longer period to avoid being taken as a property trader....15-06-2019, 08:51 AM
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We have a flat that we bought to let and have done so for 10 + years. It has never been particularly profitable, so we decided to cut our losses and sell. The property was bought to let and has never been used for anything else but letting.
The tenants moved out in October, at which point...13-06-2019, 10:54 AM -
The flat remains as a BTL property until it is put to another use ( by moving in or selling. )
So I would claim all of the allowable maintenance expenses incurred whilst it is vacant after the last tenant had moved out.
https://www.gov.uk/hmrc-internal-man...anual/bim80565...13-06-2019, 12:54 PM -
You have used those expenses to allow you to market it, surely. If you'd not, say, paid mortgage you might be being repossesed.
MIGHT be allowable as selling costs for CGT. Get professional advice from accountant specialising in this area or buy a book on property tax.
There...13-06-2019, 11:07 AM -
Dear All
I understand there have been some changes recently when it comes with calculating rental income and how much tax needs to be paid.
Was wondering if there is some website that helps with calculations since my situation is relatively simple.
The YEAR 2018-2019...05-06-2019, 10:16 AM -
if you're a UK resident, otherwise you have to use their approved software to file online. OP seems to be resident but other readers might not be....11-06-2019, 15:20 PM
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Hi all,
Apologies for asking something which is probably very basic. I am not too good with numbers and finding it hard to understand all of the terminology.
I am looking to rent out my one bedroom property. I know I can offset/reduce the income tax amount by some of my mortgage interest...07-06-2019, 10:47 AM -
Great, that all makes sense Thank you Gordon
11-06-2019, 12:29 PM -
I purchased a property via auction. I completed the transaction within the allotted 28 day time frame
However I wanted to know when exactly does the SDLT have to be paid/submitted by the conveyancer
Is it 30 days after the transaction completed? i.e. after the allotted 20 ...11-06-2019, 08:52 AM
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