CGT Calculation When Transferring BTL from Personal to Ltd Company and Deed of Trust

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    CGT Calculation When Transferring BTL from Personal to Ltd Company and Deed of Trust

    Good evening all,

    I have a head scratcher that I'm hoping to get some insights on. I have engaged with an accountant, two actually, on this topic who are being unhelpful as they would like me to pay £400+VAT before giving any real detail.

    The situation is this; I jointly own with my brother a property which we bought in 2011 for £175K and is now worth roughly £280K with no mortgage. Last year we made our wives beneficiaries of the rent and proceeds of sale via Deed of Trust but did not submit a form 17 as there is no mortgage and were advised by the accountant it was not necessary. We would now like to transfer the property to a Ltd company and would need to calculate our Capital Gains Tax liabilities. I understand from the Gov website that there is a relief of £12,300, is this per property or per person? And would our wives qualify for this releif also being beneficiaries of the sale? Thus being 4 x £12,300 relief on the gain?

    Finally, has anyone calculated and submitted a CGT return themselves? I understand the value of a profressional but as with some tasks, someone that is not an accountant can be perfectly capable so just wondering if anyone has tackled it themselves.

    Thank you


    The calculation is done electronically online by our friends at HMRC. Must be done, submitted, paid, within 30 days of sale or transfer.
    (Done in twice in past 2 years)

    (No offence but ..) you've 2 professionals but prefer the opinions of random, probably unqualified, strangers on t'interWeb?

    Buy a book on property tax. There are more than 10 taxes a Landlord may pay. It will be cheaper and less effort than flying blind.
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...


      What happens is each beneficiary must report their own capital gain = £26,250 which is 25%x £105K ( £280K- £175K ) .

      Taxable Gain = £26,250 minus £12,300 (capital gains personal allowance) = £14,000

      Each person pays tax = £14,000 at 18% = £2,520

      Unqualified stranger.


        Unless you end the deed of trust, from the sounds of it your wives are the owners of the property (or maybe a significant majority of it) and it will be they who are selling to the company.

        Without form 17 I am not sure that the trust has any impact on your tax position anyway - HMRC didn't need to know about the change of ownership for SDLT purposes if there's no mortgage, but they should have been advised of the change in income distribution (which is what form 17 does). So I would query whether the advice was helpful, or if it was misunderstood.

        Also unqualified.
        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).


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