Tax advice needed regarding new build and title split

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    Tax advice needed regarding new build and title split

    We purchased land under a company name and built two semi-detached houses.

    We are trying to re-mortgage the properties, but the mortgage company is asking us to split the title in two so each house will have a title of its own.

    Our solicitor has advised of the need to move one house from our company to another entity (like another company) only then will we be able to split the title.

    We currently have two companies – 1st company which holds one title (this is the original company) and another that can hold the other title or house (this is our second company)

    We would like to know if by moving one house from the 1st company to the 2nd, will we then have to pay stamp duty, land tax or capital gains or any other tax (SDLT)?

    Do we have to have the 2nd property as a subsidiary of the 1st company, or wouldn’t that make any difference in regard to tax purposes?


    Many thanks

    #2
    I would recommend professional advice. Tax knowledge from "some bloke on an Internet chat room" can be unreliable to say the least ~ see my other post for examples :-)

    Comment


      #3
      I don't quite see why you should have to move property from one company to another in order to split the title. It should be possible to move properties in group structures without a tax liability arising unless assets or a company leave the group.

      Comment


        #4
        There's either something significant we don't know or the solicitor's advice seems odd.
        In order to move one of the properties to another company, you'd have to have split the title as part of the process - otherwise you have nothing to move.

        So I suspect the two things are separate.
        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


          #5
          Thanks for the responses - we're based in the North West, can anyone recommend an accountant familiar with this type of thing? thanks

          Comment


            #6
            Visit Land Registry Online website and check the property title for your post code address . You can down load the freehold title and site plan by paying £3 each by credit card . You should expect find one freehold title to cover the site ( now including 2 houses ).and title holder is the 1st Company.

            Get some quotations from 2 or 3 local solicitor firms ( which does property conveyancing ) for replacing "one freehold title and site plan" by 2 separate titles and site plan, You need separate plan for each house .

            Same company can own 2 freehold houses.

            Comment


              #7
              Originally posted by bengal View Post
              Thanks for the responses - we're based in the North West, can anyone recommend an accountant familiar with this type of thing? thanks
              It should be bread and butter stuff to most solicitors.
              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

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