Incorporate buy to let properties into a limited company

[@OranzBiz]

Thanks for the excellent video. We have a property partnership of 3 people which has been operating 20 years. It has 2 properties worth £400k with no debt. We would like to incorperate that partnership and then one of the partners will buy shares of the other 2. I am one of those selling my shares. I expect I will have to pay my defered CGT at the time I sell the shares, but will I be liable for extra SDLT as well? Thanks

[@UK-Property-Tax-Accountants]

There will be no SDLT but CGT will be as you quite rightly say

[@tokenizegames]

what is the process to incorporate from the conveyance perspective. the property is remortgaged this time in the name of the new SPV and essentially is a purchase transaction but the actual sale is essentially a transfer of equity. i ask this because may solicitors insist is a 3 transactions: remortgage/sale/purchase . can you clarify ?

[@UK-Property-Tax-Accountants]

Hi VC, this is a complex area of tax law. It is specific to you and the case so I would not be able to provide a generic answer. You need to get your tax advisor and solicitor to work through the process steps.

[@LoveLearningInDorset]

Hi Simon, thank you for the info. My question that is giving me a major headache (with my small portfolio of 4)is whether to go down the Partnership>incorporation route or keep current portfolio in own names and buy future aquistions through a Ltd?

[@UK-Property-Tax-Accountants]

That is a great question and one that you need to discuss with your tax advisor for sure. There are no quick fixes to this rather complex and sensitive subject. There are a lot of thinking elements to your decision making

[@vp2272]

Very informative as always. I am considering selling my commercial property (in my personal name). It’s currently trading as a restaurant. I’m just leasing it out to a business who trade in it, i.e. I do not directly trade from it, but it’s a trading business and will continue to be so. Can I claim rollover relief/defer gain if I reinvest the proceeds into buying another commercial property, which will be leased out in the same manor (i.e. I will not trade in it myself) ?

[@UK-Property-Tax-Accountants]

You will sadly not be able to claim holdover relief as you are not the trade conducting business in the property

[@medusa1448]

Great video I have a quick question i have a small commercial property which I'm setting up as a Ltd company can I add a buy to let residential property to that company or would it be better as a separate company or is there something else I can do .

[@UK-Property-Tax-Accountants]

Yes you can is the quick answer to your quick question. Care needs to be applied on how much tax is to be paid

[@GunCatPowMeow]

Do we have to be married to create a partnership?

[@UK-Property-Tax-Accountants]

Not at all.

[@huiangus3120]

Can we skip the process on forming partnership to incorporate and move properties from personal names into a limited company straight a way?

[@UK-Property-Tax-Accountants]

Sadly not if you wish to avoid CGT and SDLT

[@GunCatPowMeow]

@@UK-Property-Tax-Accountants in view of the current sdlt holiday, if I only have one property below 500k to incorporate, doesn't it mean I can skip the partnership step and avoid the sdlt/surcharge?

[@mrivarga]

A good detailed video would be good in which you go into details about how to set up the share classes. Example: I plan to be the MD having all rights, but want to give growth shares to my kids, so when I pass away they will not have to pay a big amount of IHT. Thanks.

[@UK-Property-Tax-Accountants]

This may be useful to you kzbin.info/www/bejne/pqqrdJ2bbZ2Yadk

[@aidanhomes]

Excellent video, thank you for answering my question

[@UK-Property-Tax-Accountants]

You are very welcome and I am pleased it helped.

[@Bav.A]

good info...thanks simon

[@UK-Property-Tax-Accountants]

Thank you Bav, most kind