Thanks Kimberly having to do this now as we are in the process of buying a house and the government surcharge SDT increase means a extra £7k that we dont have the cash for. We will now sell our cheaper property into a limited company at the same time as completing the new purchase.
I have worked with Nelsons on a number of occasions therefore they could be a good starting point. See website below: www.nelsonslaw.co.uk/personal-legal-services/house-sales-purchases/
Hi Kimberley, love the videos. In respect to the new stamp duty that the LTD company will incur on transfer of property- how is this calculated? I know it’s at market value but who determines the market value? Does the LTD company have to pay for a valuation ?
There is no requirement to pay for a vaulation however it will need to be at fair value which is market value. I would always advise to check comparables and ensure you keep a copy of these should there be any questions from HMRC.
Unfortunately the lending side of things is not my area of expertise. For detail on this I would suggest speaking to a Mortgage Broker as there may be opportunities for this with the right lenders.
Much easier to do in a company as new investor just takes share of ownership of the company, but I don’t know of way of doing it without trust documents for personal ownership being drawn up. As the mortgage debt is with the original owner
How can I show a deposit for a limited company I own while transferring a property to myself? For example, if I need to show a £90k deposit for a property valued at £300k, and I have £150k remaining on the mortgage with £150k in equity, how can I use £90k of that equity as the deposit without needing to put in £90k in cash?
You can usually do a gifted deposit. Have a chat with your legal representatives and they should be able to confirm what is required to do this. The balance will then be sat on a directors loan account for you in the future to withdraw when funds allow.
Hi Kimberley, blessings, if i do sell/ transfer the property to a LTD, will I as owner of the property pay CGT the property in mention has been running as HMO for the last 7 years when i bought it.
Love it. Thats exactly what I was looking to do. I just didn't have a scooby on how to work around it. Thanks Kimberley
Glad it was helpful!
Thanks for the tips. What are the tax implications if I am leasing my Business property, (Hotel )what are the rules on my income from that property?
Thanks Kimberly having to do this now as we are in the process of buying a house and the government surcharge SDT increase means a extra £7k that we dont have the cash for. We will now sell our cheaper property into a limited company at the same time as completing the new purchase.
I am seeing many who are doing this and it does work although there is still stamp duty to pay although less than the other route no doubt.
Thanks Kimberly can you recommend solicitors that have experience with this? Having trouble finding one
I have worked with Nelsons on a number of occasions therefore they could be a good starting point. See website below:
www.nelsonslaw.co.uk/personal-legal-services/house-sales-purchases/
Amazing video. Thank you 🙏
My pleasure!
Hi Kimberley, love the videos. In respect to the new stamp duty that the LTD company will incur on transfer of property- how is this calculated? I know it’s at market value but who determines the market value? Does the LTD company have to pay for a valuation ?
There is no requirement to pay for a vaulation however it will need to be at fair value which is market value. I would always advise to check comparables and ensure you keep a copy of these should there be any questions from HMRC.
Do you get 100% principle home exemption if the property is legally owned by 2 people and the other is not living in the property?
Each person is treated independently so the person living in would get 100% and the other person is likely not to.
Good Day Kimberley..In America, investors can take-over Exsisting Mortgages. is this Option available in the UK?? Please..
Unfortunately the lending side of things is not my area of expertise. For detail on this I would suggest speaking to a Mortgage Broker as there may be opportunities for this with the right lenders.
Much easier to do in a company as new investor just takes share of ownership of the company, but I don’t know of way of doing it without trust documents for personal ownership being drawn up. As the mortgage debt is with the original owner
Love your videos. I know most of the content but it's always good to have assurance from an expert. ❤
Happy to hear that!
Can I get equity from my current resident property and transfer the property it to a ltd at the same time?
You would be able to however there would be stamp duty payable and depending on the position capital gains tax to be considered.
This is such great advice thank you.
Hi Kimberley, can I ask , does this process alter much if you don’t have a mortgage or your property? 🧐😊😇
It’s probably a little easier as legal should be cheaper. No ERCs. So only capital gains to consider if you have let them out and stamp duty.
How can I show a deposit for a limited company I own while transferring a property to myself? For example, if I need to show a £90k deposit for a property valued at £300k, and I have £150k remaining on the mortgage with £150k in equity, how can I use £90k of that equity as the deposit without needing to put in £90k in cash?
You can usually do a gifted deposit. Have a chat with your legal representatives and they should be able to confirm what is required to do this. The balance will then be sat on a directors loan account for you in the future to withdraw when funds allow.
Hi Kimberley, blessings, if i do sell/ transfer the property to a LTD, will I as owner of the property pay CGT the property in mention has been running as HMO for the last 7 years when i bought it.
Yes there will be CGT for you and stamp duty for the company.
I am based in Scotland. That is what I want to do. Can you help me to go through this process?
Where are the properties based?
Hi Kimberley
Thanks for the video. Do you do tax advice ?
We can provide advice. Get in touch with my team and I at @shapcottsaccountants www.shapcotts-accountants.co.uk
You are brilliant! And Just weathered yourself a new subscriber
Welcome.
excellent videos and very useful info,Please suggest any solicitor or contact details