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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My heterosexual partner, therefore not civil partner, wants to gift part ownership of our home to me and we would therefore become joint tenants (as co-owners). The property at the moment is owned by three people (my partner, his sister and her husband). It was a large church and has been converted...15-04-2019, 16:40 PM
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Thank you again. And for the lead on the helpline!...18-04-2019, 07:44 AM
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It's probably just because it's unusual.
There aren't many occasions in life where someone is simply given something so valuable, and it feels as if there should be some compensatory downside.
HMRC have a help line if you want a second opinion, but I think your solicitor sounds correct...17-04-2019, 11:09 AM -
Thank you both. Yes, I am following the Civil Partnership changes. Also, thank you for reassurance. For some reason, doing this does not sit well with me but I can’t find any reason so will just accept I’m worrying for no reason. Thanks again....17-04-2019, 10:56 AM
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Hello, I am an accidental landlord and I have just read something that is really worrying.
Back story - We purchased a property in 2008 which fell into negative equity. It was a 1 bedroom property which we quickly outgrew as we went on to have twins in 2013. The mortgage company were...14-04-2019, 09:40 AM -
Thanks Gordon I will make sure I do this
Jk0 - if only.gif "(rofl)")
just finished my expenses for the first year - 5 more to go .gif "(wasntme)")
16-04-2019, 21:42 PM -
As you made a loss, maybe suggest HMRC send you a fine?
...
16-04-2019, 13:57 PM -
If the gross rent is £520 per month and your letting agent is deducting £60 per month and your mortgage interest is costing £470 per month, then in addition , you have paid for annual building insurance plus extra costs for some property maintenance , you may have been bearing a loss in...16-04-2019, 13:40 PM
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If there's no mortgage involved, this is simply a gift.
There are rules about gifts designed to prevent tax avoidance, but a genuine one-off but generous gift is perfectly fine and would be tax-free.16-04-2019, 09:30 AM -
I suggest Plan B.
Unless I have it wrong, you will soon have the right to become a mixed-sex Civil Partnership.
http://equalcivilpartnerships.org.uk...sent-received/
That is enabling legislation. The Govt now need to implement the Regulations, which seems to be...16-04-2019, 04:54 AM
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