Transferring individually owned property to LTD Co

  • Filter
  • Time
  • Show
Clear All
new posts

    Transferring individually owned property to LTD Co

    I wonder does anyone know of any successful transfers of residential investment property from individually owned to a Ltd Co without incurring Capital Gains Tax. I have read that there is a possibility of this qualifying for section 162 TCGA relief. I have been told by my own accountants that I would have to pay the CGT on transfer but I am not convinced this is so. I would love to know if anybody has managed to transfer and benefitted from the incorporation relief and not had to pay CGT on the transaction.?

    Try it! I don't think it would qualify. At the last property tax forum I went to, the changes from section 24 were covered in detail - most of us know that many LLs will now try and incorporate. TCGA relief was mentioned, and opinion was unanimous that LL incorporation would not pass the test - unincorporated property business have never really been considered "businesses", so to try and get relief based on transfer of a business of going concern is stretching it.

    But why not try - there is no relevant case law that I'm aware of. I would think, however, that HMRC would be very keen to fight this one.....

    All more eloquently described below.


      There are some advisors who claim that if you can show that you have been operating as a business prior to the transfer for a number of years (you have a number of properties and it takes a reasonable amount of time every month) you can make the transfers without CGT.

      No one has shown that anyone has actually done this - and HMRC can challenge any such transfer for a number of years.
      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).


      Latest Activity


      • Reply to Tax Return - HELP!
        by Jon66
        The electronic self assessment is fairly easy. If you're not doing this I would recommend you get it set up for next time. There are also explanatory notes as you go along. Just done mine, it must be the covid effect! Doesn't normally get done until after Christmas.
        01-07-2020, 23:00 PM
      • Tax Return - HELP!
        by Brian862107
        Does anyone know of any good online tutorials/guides for filling out your self-assessment tax return? I don't know about you's but I hate filling out forms (they always ask you to tick a box to say the information you've put in is correct too!!)!

        This is my first year filling out the self-assessment...
        01-07-2020, 15:51 PM
      • Reply to Tax Return - HELP!
        by Gordon999
        Are you preparing the paper tax return SA105 ? The figures declared in each box are for one year .

        So rental income = £5500.( box 20)

        Insurance and rates := ( box 24 )

        Prop Repairs = ( box 25 )

        Prof Fees ( letting agent ) = £660 ( box...
        01-07-2020, 21:38 PM
      • Reply to Tax Return - HELP!
        by jpkeates
        I get an accountant to complete my tax return.
        It costs, but it's an allowable expense and it's worth it just to know that I'm keeping the tax I pay to a minimum.

        You are taxed on your net income (which is rent less expenses - like the management fee and repairs), but you don't...
        01-07-2020, 16:54 PM
      • Returning from oversea landlord taxation
        by LAN45

        I have been living abroad and paied rental income taxes, according to legislation, to HMRC as oversea landlord.

        ue to recent developments I'm moving back to UK looking for a job and would like to understand how to handle paying taxes? I will have no further income for...
        22-06-2020, 12:15 PM
      • Reply to Returning from oversea landlord taxation
        by jpkeates
        When you began your new business you should have told HMRC.
        They would have confirmed how they wanted you to complete your tax return.

        If you get in touch now, they'll confirm what they want you to do.

        Tax returns are based on the tax year, which runs from 6th April to...
        01-07-2020, 16:13 PM
      • Reply to Returning from oversea landlord taxation
        by LAN45
        Thank you. Since I've never done a self assessment when is it due for? In this thread people wrote end of year, is it calendar year 31/12 or fiscal year 01/04? Or something different?...
        28-06-2020, 15:09 PM
      • Reply to Returning from oversea landlord taxation
        by Jerome2020
        It doesn’t look like you’ve actually been away long enough to lose UK residency so you’ll just need to get the statements showing tax paid from your agents and then complete your self assessment as usual to make sure you pay the right tax. You shouldn’t have to anything more than that.
        28-06-2020, 05:21 AM
      • Moving Back Into Let House
        by Sentaiwarrior

        I was wondering if anyone can provide me with advice.

        I used to live in my own house. I moved for work a few years ago and let my house (with consent to let).

        I'm planning to move back into my house which is currently still let. I've given the tenant three...
        05-06-2020, 20:16 PM
      • Reply to Moving Back Into Let House
        by Sentaiwarrior
        Thanks for the advice - much appreciated
        26-06-2020, 20:45 PM