Purchase BTL as individual then transfer to ltd co / bare trust - works?

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    #1

    Purchase BTL as individual then transfer to ltd co / bare trust - works?

    Hi All,

    I read this article today and though I have searched existing topics I can't find anything on this (have seen some on SDLT impact). I'm thinking about the tax implications given lenders are refusing ltd companies more and more...

    https://www.landlordtoday.co.uk/brea...urchase-option

    Does anyone know whether this strategy works and if it does, is there a limit to how long you can have held the property as an individual. I will ask a financial advisor this week, but thought I might find some pearls of wisdom on here!

    Thanks
    Tags: None
    #2
    When you create a bare trust, you change the beneficial ownership of the property (but not the title).
    I can't see many lenders allowing that.
    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

      #3
      If the ownership of property is passed from personal name to a "bare trust" which is managed by a limited company ( acting as letting agent ).

      Hmrc would treat the bare trust as owner of the property and require the trust to pay tax at 40%.

      Comment

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