including personal properties on business tax returns

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    including personal properties on business tax returns

    Hi All

    Here’s the scenario

    A&B have newly registered a Limited company - currently in the process of acquiring two properties in the next 6 months.

    A has a previous BTL property in own name and A&B have a joint BTL property. Personal properties have only been on rent since April 2017, this will be the first tax return to be submitted.

    All rental income will be used to pay off the mortgages or invest in further properties, no intention to remove funds as salary/dividends in at least the next 10 years (unless circumstances change drastically)

    Is it possible to include the two personal properties on the business tax returns so that all properties are under the umbrella of the company?

    How would we go about doing this?

    thanks for taking the time to read/respond

    #2
    Sell the properties to the company.

    Unless the company pays full market value, it is likely that special tax rules and/or capital transfer tax will apply.

    Comment


      #3
      No.
      The personal properties are taxed personally.

      If the business buys the properties, SDLT (and possibly CGT) will be due - depending on the value of the properties - and obviously any mortgage(s) will need to be replaced/paid off.
      But this can't be retrospective.
      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


        #4
        The company is a separate legal entitiy and has to report income from properties owned by the company. It should not report income from properties owned by other persons.

        The income and expenses for properties owned by other persons should be reported in personal tax returns by the registered named owners.

        Comment

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