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


    • Deed of trust to Ltd company
      Hello All,

      I’m new to this site/forum so apologies in advance if this question has been asked before.
      i own my current property 100% and it’s on a personal mortgage. Now I want to move from the property due to personal reasons and want to let it out. I want to do BTL via company...
      20-05-2019, 17:11 PM
    • Reply to Deed of trust to Ltd company
      If you don't want to break the existing mortgage loan, then you certainly cannot move to a new BTL mortgage....
      24-05-2019, 12:15 PM
    • Capital gains tax and tax credits
      hi i have recently sold a rental property and have been working out my tax liability for the GCT which works out at 2,500 tax to pay and im a non tax payer and this just takes me over the threshold - ok for tax credits pruposed do i need to declare the captial gain as its a capital gain and not income...
      17-05-2019, 14:29 PM
    • Reply to Capital gains tax and tax credits
      For any owner occupied property ( and never rented out ) , there is no tax to pay on the capital gain.
      24-05-2019, 12:05 PM
    • Question Re the 3% BTL SDLT Premium
      Hi All

      Both myself and my wife each have a number of BTL props in our sole names.

      We also jointly own our marital home.

      We want to move house to something bigger, and have been advised that the 3% SDLT Penalty will sting us on the new purchase even though it is...
      22-05-2019, 18:14 PM
    • Reply to Question Re the 3% BTL SDLT Premium
      If you buy a new home before you have sold the present home, you should expect to pay the extra 3% sdlt.

      But current rules, you are given 36 months grace period to sell the old home and claim back the extra 3% paid on the new home
      24-05-2019, 11:59 AM
    • Higher tax bracket
      I will be a brand new landlord soon and wasn't sure if what I'm doing is correct (best for tax reasons)

      I have two properties

      1) Bought Feb 2017 (£185,000 24% equity) residential for me to live in
      2) Bought May 2019 (£150,000 25% equity) buy to let

      21-05-2019, 15:10 PM
    • Reply to Higher tax bracket
      At present , you have one residential property which is your home and no rental income to report.

      You have just bought a BTL in May 2019 ( this month) so you will be reporting the rental profit ( 2019-2020 ) some time during April - Oct next year . Submit a tax return your self or...
      24-05-2019, 11:52 AM
    • Reply to Higher tax bracket
      Thanks for the info guys. I guess speaking with an accountant is the next step. Have any of you used anyone from Manchester that you would recommend?
      23-05-2019, 11:04 AM
    • Reply to Question Re the 3% BTL SDLT Premium
      Thanks. Yes we are selling our main residence and buying another. So that's good news, thank you.
      23-05-2019, 10:29 AM