13:18 PM, 25th February 2020, About A year ago 18
We currently have 20 properties, 10 of them in Surrey where we live and remaining 10 in Ashford Kent around 47 miles from our home.
As we understand incorporation relief is only available if we incorporate whole of portfolio. We have met 3 of Accountants and 2 of them have agreed that we can split portfolio in two due to geographical reasons and form a separate business.
The way they have described to go about it is to form an LLP for 2-3 years transfer properties into LLP and submit partnership accounts and then Incorporate into LTD company in order to receive s162 relief. We do not want to incorporate whole portfolio due to potentially double taxation on extraction and the fact we have favourable terms on properties owned in Surrey. All properties are jointly owned between my wife and myself and fully managed by us too.
I understand that legislation is clear that whole business must transfer in order to benefit from s162 relief, but equally I believe that as long as it can be demonstrated that what constitutes a separate business then it should satisfy s162 criteria. I believe formation of LLP and partnership accounts for 2-3 years will be able to distinguish between 2 portfolios.
Any input will be greatly appreciated.
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