Transfering a Joint Ownership Mortgage House to a Limited Company

[clindsay]

Hello All,

This is my first post, alot of useful info which is great for a landlord thanks.
I jointly own a buy to let property with my sister. We would like to sell the property and buy something else abroard maybe.
We are thinking the most Tax efficient way to do this would be to transfer the deeds and mortgage to the existing property to a Limited Company, sell the property and then buy the new property through the Limited Company.

I was just woundering is this the most tax efficent way of facilitating this sort of transfer?

i.e. whats the best way of selling my current buy to let house, if the intention is to buy another mortgaged property with the proceeds?

Many Thanks

[Telometer]

We are thinking the most Tax efficient way to do this would be to transfer the deeds and mortgage to the existing property to a Limited Company, sell the property and then buy the new property through the Limited Company.

I doubt it very much. A limited company is almost never the answer.


The most sensible thing for you from a tax perspective is to do is to stick with the property you have.

[Phlash]

Hello All,

This is my first post, alot of useful info which is great for a landlord thanks.
I jointly own a buy to let property with my sister. We would like to sell the property and buy something else abroard maybe.
We are thinking the most Tax efficient way to do this would be to transfer the deeds and mortgage to the existing property to a Limited Company, sell the property and then buy the new property through the Limited Company.

I was just woundering is this the most tax efficent way of facilitating this sort of transfer?

i.e. whats the best way of selling my current buy to let house, if the intention is to buy another mortgaged property with the proceeds?

Many Thanks

Sorry, I don't mean to snigger, but I am!

Did someone suggest this, or is it another case of 'a limited company structure must be more tax efficient, although I have no known reason why or how'?!

PS. Welcome to the board....no harm meant, just playing on the company = better tax mythological dream!

[Gordon999]

You will become liable for capital gains tax whether you sell direct to a buyer or do a transfer to a company .

If you decide to use a company, the extra costs will include - incorporating a company, paying the mortgage application charges for a company, 2 x conveyancing costs as "buyer of property" and "seller of property".

A UK company may not be suitable for buying a foreign property. You need to get legal and tax advice when buying overseas.