Limited Company and BBL

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    Limited Company and BBL

    Could do with some advice.
    So I have a Ltd company with a semi commercial proeprty in it as follows :
    • Value £155k
    • No mortgage
    • Bank Natwest
    • Have a £50 Bounce Back Loan ( BBL ) in the business account un-used
    • The BBL was loaned to the Ltd
    I now want to transfer another semi commercial property into the Limited company :
    • Value £225k
    • Do have a Natwest loan of £47k outstanding
    • Will have to pay capital gains
    I would have to ask Natwest to refiance the loan of £47k to the Limited company and all the fees that go with it.
    Can I not use the Bounce Back loan sitting in the Limited company ?
    There are many tax implication as I would take the loan out of the Ltd company then pay of the £47k and then transfer the property loan free.

    Well aware that the bouce back loan was not intened to be use in this way, I was about to pay it back as I have no need for it.

    I can't get my head around the tax issue , is there a better way of doing it without being hit down the road with taxes or penalties ?

    Advice very welcome.

    How much capital gain do you make from transferring the semi-commercial property into your limited company ?

    The capital gain is taxed at 18% or 28% for "residential property "and 10% or 20% for "commercial property". You can claim capital gains personal allowance of £12,300 before paying capital gains tax.

    Does the property title say residential property or commercial property ?


      The title says commercial property.


        The capital gains is going to be £4,600 after my allowance.


          I would expect your own tax bill at 10% rate on £4600 taxable capital gain after disposal of commercial property held under personal name, may be around £460 .


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