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

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    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...


    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!


    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).


      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%.


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