Incorporation relief

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    Incorporation relief

    This might interest you guys if anyone has a problem with the higher tax rules.

    If you actively work in your property business for over 20 hours per week, you can transfer your properties to a company, without paying CGT.

    In theory.

    There are a number of problems with that and I'd not want to be the first person to interest HMRC and have a test case.

    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).


    Latest Activity


    • BTL property, wife's property or both our property?

      First off appologies for joining and going straight in with a question. I promise i will try my best to positively contribute in the future.

      My wife and i are in the process of remortging our home as a BTL and purchasing a new home to live in. The BTL is in my wife's...
      13-08-2019, 10:11 AM
    • Reply to BTL property, wife's property or both our property?
      Doesn't work like that.
      Married couples are considered as a single person for the purposes of the surcharge.
      24-08-2019, 11:39 AM
    • Reply to BTL property, wife's property or both our property?
      You also need to weigh up the costs of SDLT. If your wife owns one and you own the other, no 3% surcharge to pay.
      24-08-2019, 10:23 AM
    • Reply to BTL property, wife's property or both our property?
      In this particular case, what is the benefit of being joint owners with a 90:10 or 99:1 split over the wife having total ownership.
      Any split in ownership means that the OP has some income (which is going to be taxed at the higher rate) and can only offset the available portion of the mortgage...
      24-08-2019, 09:16 AM
    • Reply to BTL property, wife's property or both our property?
      Pretty much what he said.

      We have a 90:10 share on our buy to let but the mortgage is joint. In that we are both 100 % liable should the other just "do a flite be nite"
      basically I pay no tax on my share as it's below the allowance. Wife pays at basic rate.
      24-08-2019, 04:00 AM
    • Reply to BTL property, wife's property or both our property?
      I would remortgage the property as a joint mortgage. Depending on your wife's income it might open up more lenders. It is not clear how much LTV etc..

      Make sure your solicitor registers you as "Tenants In Common".

      Then, set up a declaration of trust to split the...
      23-08-2019, 13:56 PM
    • CGT Historic Costs
      Always Problems
      I am compiling a list of expenses which I spent over the 30 years where I ran a business at a Commercial Property which included land which I recently sold.
      The premises had been rented out by my father for 20 years before that
      Can I list the earlier expenses I incurred in that I spent £700...
      23-08-2019, 09:21 AM
    • Reply to CGT Historic Costs
      Always Problems
      Yes you are right, The £700 did include the £130 fee the Valuer Charged for the Probate Valuation,.and the rest was dealing with other matters.
      There is an additional bill of £280 for dealing with the Notice to Quit and negotiations for tenant compensation with the tenants solicitor
      23-08-2019, 09:55 AM
    • Reply to CGT Historic Costs
      Only capital expenditure -- fighting a right of way would be a capital expense, serving a notice to quit would not. Initial land registration would be OK, the right of way dispute depends on details.

      £700 30 years ago would be a terrific solicitor's bill to serve a notice (are you sure...
      23-08-2019, 09:32 AM
    • Trading allowance and my tax bill
      My two sons look after my properties whilst I am on holiday.
      If I make a payement to each of them of £1000 each for this service can I declare this as an expense on my tax return?
      In addition can they take the money and not declare it under the trader's allowance.............
      01-08-2019, 14:25 PM