How To Incorporate (Transfer Properties In Your Own Name To A Ltd Company) Without Paying Tax.
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- เผยแพร่เมื่อ 8 ก.พ. 2025
- In this video I explain how to transfer properties that are in your personal name into a limited company without paying capital gains tax or stamp duty land tax. This is a full training where I go into the granular details of the different scenarios people are faced with, and I also talk about how I've been able to help clients in certain situations and what has worked for them. This video will save you thousands if not millions in taxes. I hold nothing back in this full training.
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This TH-cam channel is all about how to build a 7 & 8 figure Property Portfolio. On this channel I share the exact secrets that I have used to grow my own property portfolio to a property value of multiple 7 figures that produces an income of over £150,000 a year.
My name is Richard Norris and I am the founder of Property Investors Accelerator. The Property Investors Accelerator program is dedicated to help you build a 7 & 8 figure property portfolio that produces in excess of £100,000 a year, so that you can have the freedom of time to do the things that you ultimately want to do.
I am very passionate about Property, Business, Finance and Sales. In my free time I like to travel, watch football and spend time with my partner Daniella and our 3 children.
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Thank you so much Richard. We are currently making a loss on our rental and would also make a loss if we sold due to the high LTV mortgage (more than original purchase cost) and capital gains tax. Now thanks to you I can plan a way forward.
This is really comprehensive advice Richard - thanks. I haven't seen such detail anywhere on the web, as yet, nor the ability to contact property tax experts who understand growth strategy. Look forward to speaking to some of the team soon about my HMOs and getting them into a Ltd company asap and any other advice. Much appreciated.
@ Howard Hooper, no problem at all. Thank you so much for the positive feedback. I am pleased you found it valuable. Sure, feel free to reach out to myself or one of my team for help whenever you are ready to incorporate.
The 1-day bridging loan to create the limited co director's loan will probably set off alarms, buzzers and flashing lights at HMRC. Not sure if they will share the view on full HMRC compliance if they get to watch this video.
Hi Richard really helpful video will check out your Smart company video next
Fantastic video, quick question as
New start in property investment can you use the limited company straight away , many thanks john
Hey John, yes even if you are brand new to property you can set up a limited company from day one. We often advise our clients to set up a limited company from day one as if you are looking to build a property portfolio it is from a high level of course the most tax efficient set up. The more detailed answer should consider looking at one's personal circumstances and goals to determine the best tax strategy to begin with and optimise to allow for future growth. With that said, the limited company share structure is the most important thing to get right from the get go, eg alphabet shares, freezer shares, growth shares and whether a discretionary trust is required to mitigate inheritance tax from the property portfolio. There are some very smart tax advantages to setting up a limited company if you get the best advice you can save on CGT, SDLT, and IHT, you can also draw personal income from the portfolio tax free also alongside any other personal income. The best advice I can give you is to speak with a property tax specialist, NOT an Accountant even a property Accountant, you need TAX specialist advice if you really want to set things up properly. I hope this helps. If you require any specific individual property specialist and tax advice you can book in a call with my team to see if we can help with this (I think you have a call booked in with Richard Ellis from my team on Tuesday), he can take a look at your specific requirements and go into detail with you on this during your call.
Richard, the info here is invaluable. Thank you so much.
Would it be possible to have the link to your spreadsheet that you use for your portfolio of properties? Many thanks
Hi Richard thank you so much. Can I ask what would happen in a scenario where a lump sum equity has already been released via a refinance prior to incorporation? How would this affect the calculation of the base costs, and what considerations are there to navigate?
Hi Richard,
Wow, what an informative video. Many thanks for providing so much good information, in such a clear manner.
Re. Scenario 2. Could you let me know the approximate total cost of this scenario, from the time they approached you until they had set up the smart company and transferred all the properties.
I ask as I have a friend who has two houses in his own name and this seems to be a good way forward but will obviously be dependent on the costs involved.
from the time smart company set, the properties will be in company name or personal name? And under which name when refinancing? Thanks.
In scenario 2, why did you set an LLP, could you not have simply registered a general partnership? Would this not have cheaper and achieved the same thing?
Good content!!!!
How many buy to let’s should you own before setting up as a business? I currently have 1 in my own name but really want to start to scale up
Rich that was insightful, thank you. You talked about putting the link for your tax and legal experts below, but there is no link below. Please can we have the link. Ben & Mich
Hi @Benjamin Ocran, I think you are set to enrol in the program with me on Monday, so when we do our first one to one, I will direct to you the exact specialists in the team based on knowing more about your personal individual circumstances to best advise and steer you in the direction thats exactly right for you. Look forward to working with you.
@benjaminocran1797 how was your one to one with Richard? Did you get the tax and legal experts contacts to setup smart company structure? Thanks
How much would creating an LLP would cost.
Also set up cost of a smart company.
@Rajesh Patel, it really depends on one’s personal circumstances, but an LLP could range from as little as £2k to £8k and a smart company is normally in the region of £12k plus VAT.
With that being said, I would try not to think about the costs associated with the set up of such tax structures but the tax savings of doing so, if one set up a smart company the cost of setting it up would be extremely small compared to the savings, these things when set up correctly are an investment into the future.
If it costs you £12k to set one up but you stand to save £100,000 plus in taxes, it becomes a no brainer. From what I have seen with clients when a smart company makes sense the cost isn’t a consideration as it pays for itself with a higher return in the process.
The difficulty seems to be in finding mortgages for LLP. Only come across one broker with fees of £3,000 to pay towards each LLP mortgage application
Great video Richard....very comprehensive.
@Matthew Smith, thank you, glad you found it valuable.
Can you help me. I have bought 7 properties cash in South Africa. I want to set up a company and scale up but Not sure how transfer property into a company
Bit am i ok to jave ywo properties in own name but im still low rate tax payer
I just created a ltd, can I buy a property via ltd company by using the scenario 1? ( transfer my 25% gift deposit to the company as DLA) and use the future profit to pay back the director loan account. PS: the mortgage offer was for BTL via company.Many thanks .
Errr.... maybe this is a dumb question but wouldn't it be simpler to sell the property to the company at the original purchase price thus avoiding CGT? Also by doing this you reduce stamp duty.
HMRC can't complain because when the company eventually sells the property. at full market price it gets the full CGT and stamp duty.
Is undervaluing a property on paper any less legal than overvaluing a property to get a bigger mortgage (more debt and interest) to draw out money untaxed?
You can 'sell" the property to the ltd company at much less than market value to save on tax and it's perfectly legal. If you look at the SDLT1 form it asks if there is any buy back clause at less than market value. Any such clause would devalue the price to the "buyer" and justify the price being below market value. So on a property worth 300k you "sell" it for 150k with a buy back clause at 150k. The property is only worth 150k to the "buyer". because the "buyer" can never "sell" it for more than 150k. You can move the property back and forth as many times as you like without incurring CGT. Only when you sell up and retire do you pay CGT. Why mess about with a complicated scheme that involves more debt?
In my view what you're proposing is nuts because it's taking out a mortgage just to obtain "income" that can't be taxed because it's not income. This type of scheme is for scam artists that usually end up going bust.
Presumably to maintain this stream of untaxable "income" you'd have to keep on taking out new finance in line with a rise in property prices. Hold the phone, stop the presses property prices are now crashing. So with increasing interest rates you fail affordability rules, you can't shop around and you become a mortgage prisoner on variable rate at 10%. Deary me
Hi Richard. Is it a good idea to set up a company before buying the first BTL property?
@ Lenka Janckova, Hi it really depends on your personal circumstances, but ultimately if you are looking to build a property portfolio for the long term, I would suggest a limited company is your best option yes, especially because of the advantage of the directors loan account.
@@richardnorris4595 thank you Richard . Is this something you touch on during the first call, or is this call for the" assessment " purposes . Thanks
@@lenica007 the call with us would be to see if we could help you grow your portfolio we would assess your situation and ultimately elaborate and talks about the things you mention here.
Hi Richard, in scenario 2 when you’re incorporating btl from llp to ltd, how is it that bridging loan (for base cost equity release) is taken in personal name against the property that’s in llp and then payback is through ltd company? Isn’t it you have to pay back the bridging loan the same way it was taken out i
Hi Aditi, so the reason that you take out the bridging loan in your personal name is so that you can then put the funds into the ltd company as a directors loan - the company then on paper pays off the bridging loan.
This all happens with no physical transfer of cash, it’s purely set up as mechanism to create the transactions on the balance sheet, so we can show a directors loan which is then owing back to us from the Ltd company to create a smart tax plan for income tax.
Thanks very insightful!
@Tahir Hussain - thank you.
I do think it's great that people are creating free videos and TRYING to help people. BUT. be warned people you could cost yourself a fortune if you don't fully understand and don't get specialist advice. Tax is an incredibly complex subject, there are some half truths in this video, I'm not going to go into all of them BUT.. something I simply can not over look that might cost you a fortune! @30:11 "we're going to make her a lower rate tax payer for 1 year" - it doesn't work like that!!!!!!!!!!!!!!!!!!!!!!!! may if you only had a small gain but it then it would depend on where your other income is coming from as to whether it's worth "making yourself a lower rate taxpayer" even if they had no other income, they could only pay the 18% up to the higher rate bracket, so around the first £50k, anything above that is then going to be 28%. So if a higher rate tax payer reduced their income to be within the basic rate band, say to £40k, they'd only get the first £10k of the capital gain at 18%, everything above that is then 28%. basically selling the property for that sort of gain is going to make them a higher rate tax payer! The best advice in this video is the disclaimer!
This advice is completely wrong and would not be accepted by HMRC.
The second I see 'smart tax advice' paired with 'how to incorporate your properties' I immediately know you are uneducated and giving advice that is going to see people STUNG...
The only reason a property should ever be incorporated in this current climate is if you are paying the rent directly into a pension. Even then, that is not THE MOST tax efficient method of property ownership.
The problem with incorporation, you think you are saving tax... BUT, have you forgot about what happened with IR35? You are using tax avoidance method only available for investment income, but using it to a trading income problem, which is illegal. HMRC will get you for this, they did it with IR35.... do you not remember all the pilots killing themselves because HMRC took RETROSPECTIVE effect on their tax decisions?
Imagine being told by HMRC when you retire... you used the wrong tax method, pay us £250K. No chance.
Please seek professional accountancy advice...
Richard do us a favour and lay off the advertising- im sick of hearing your voice .
CG65745 - Transfer of a business to a company: computation: transfer of liabilities
The transferor is not required to transfer business liabilities to the company but often does so. This is normally done in practice by the company giving the transferor an indemnity in respect of those liabilities.