Inheriting a property directly to a limited company

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    Inheriting a property directly to a limited company

    Happy VE Day first and foremost 😁

    A friend of mine‘s mother sadly passed away recently and he intends to rent out the property which he will inherit.

    The life insurance pay out will clear the mortgage, so there shouldn’t be any complications with a lender.

    It would make sense for the usual tax reasons to have the property registered under a limited company however would it be possible to register the property straight into a limited company directly from his mother, rather than going to him personally and then having to sell it to the limited company and incurring the usual stamp duty charges?

    I would imagine this is (unfortunately) a common question when when dealing with inheritance. Has anyone else researched this previously?

    Thanks in advance

    #2
    I think you can change the will with a deed of variation so it's left to the company instead of yourself.

    Comment


      #3
      Since the mother is dead ,she is in no way able to transfer the asset, so as your friend is the beneficiary of the property I suspect that the transfer of the asset toa Limited Company would be treated as a sale and purchase and if your friend owns their own property this would triggerthe SDLT. To be sure I would advocate your friend speaking to an accountant.

      Comment


        #4
        Thanks for the advice.

        i suspected it would trigger sdlt. Will advise seeking professional advice from an accountant 👍

        Comment


          #5
          Unless you really want to pay more tax go and see a solicitor instead. They can alter the will eg https://www.redstonewills.com/news/i...it-benefit-you

          Comment


            #6
            If he's the sole beneficiary and executor, it would be simple.
            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


              #7
              Unfortunately there was no will set up as she died suddenly and so is dealing with probate

              Comment


                #8
                Borrow a book from your local library about probate or buy a diy probate book online.

                Comment


                  #9
                  Do some research before you make a decision. Even if they are intestate you can use a deed of variation. If you don't want to do the leg work perhaps pay for some proper advice.
                  Another example here https://www.irwinmitchell.com/person...ter-death#will

                  Comment


                    #10
                    Careful, think about the double entry when you transfer a property to a limited company (a nice DLA). You will have none of this benefit which will probably far outweigh the SDLT saving in a few years.

                    Comment


                      #11
                      Property transferred upon death (as this effectively would be treated) does not attract SDLT unless consideration is paid and a deed of variation can be entered into so the property is transferred directly to a company.

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