Move to LTD Company and

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    Move to LTD Company and

    Hi All,

    My first post and after some advice please.

    Currently have 1 buy to let property that I am planning on transferring to a new LTD Company due to higher tax rates, we will be investing further into property in the future too.

    I understand that transferring to a LTD Company, Stamp Duty is payable and also Capital Gains is payable by me, however in order to use the private residence relief what sort of proof would I need to show?

    Would a residential mortgage be enough, can an odd utility bill or council tax bill suffice? Or is it more stringent?

    My other option is to put my husband on the property for now and then next year move to a LTD company, I assume that way we could both take advantage of the 12,300 capital gains tax free allowance, even if he has only partially owned the property for a year?

    Adding to the above, we had to pay the additional higher rate stamp duty on our main residence due to the above BTL, if we move to a LTD company by mid next year, we could claim this back as we would only have one residence.

    Apologies if any of my assumptions above are ncorrect, just trying to gain some clarity on our options.

    Thanks you!

    Re transferring to your husband, you'd have to balance the current SDLT situation against the double CGT benefit.

    PRR is usually simple, because HMRC know when your rental business began because you told them about your new business and started paying them tax on it.
    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).


      There is no liability for capital gains tax on property transfers between husband and wife; the recipient takes on the property at the original purchase price.

      For disposal of property to Ltd company , the seller has a capital gain ( market value minus purchase cost ) which is liable for capital gains tax.

      To prove PPR at old residence , the council tax bill in your name should be adequate .

      The higher rate sdlt ( stamp duty) is paid by Ltd Company ( assumed to be the "buyer " ) .


        Thank you both for your reply! Really helpful around the PRR as I wasn't sure if the residential mortgage was enough as proof as bills/council tax etc for the duration were not in my name, only the mortgage.


          I should make clear the "private residence relief" is given for the duration when you were living at the property.

          If you never lived in the property, and you paid council tax for some vacant periods whilst waiting for rental tenant , you are not counted as living at the property.


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