DIY conveyancing for transferring own house to ltd company

by Readers Question

9:37 PM, 14th September 2022, 4 years ago 5

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Hi, I finally decided to transfer my personally owned & lived in property to a ltd company for renting out.

I have always lived in this property and will be moving out soon.

I understand that transferring to ltd company and rent later will save me from CGT for past dates.

I also am aware the SDLT is payable but I decided that it will be justifiable in the long term inheritance planning.

There is no mortgage, I am the property owner and my immediate family are involved as shareholders of the company.

I am considering to do my own conveyancing because there are no third parties involved and there are just couple of forms to be sent to HMLR (AP1, TR1, ID1) and HMRC (SDLT Return).

Am I making a significant mistake here?

Ilker

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Mark Alexander - Founder of Property118 Read Full Bio

Member Since January 2011 - Comments: 12211 - Articles: 1406

9:47 PM, 14th September 2022, About 4 years ago

Hi Ilker

Given that you are hoping to use a Limited Company structure for inheritance tax planning, presumably you will be using the ‘SmartCo’ structure? – see https://www.property118.com/tax/smartco/

You’re definitely going to need legal help to do that, so why not ask your question of a specialist tax barrister now?

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Ilker Sertler

Member Since July 2022 - Comments: 2

1:36 PM, 15th September 2022, About 4 years ago

Reply to the comment left by Mark Alexander – Founder of Property118 at 14/09/2022 – 21:47
Thank you Mark, we did exactly what you suggested. Great videos from you on Youtube. Please keep going.

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alocjtoi

Member Since March 2019 - Comments: 30

2:51 PM, 17th September 2022, About 4 years ago

I’ve done my own conveyancing whenever the other party’s solicitors allowed this. It was the case for about thirty properties out of about forty in my portfolio and I never regretted this. Yes, there were some hiccups, i.e. I forgot to file an OS1 form once and the property was remortgaged in the meantime, so this took quite some time to resolve, but nothing that I wasn’t able to fix. Transferring to your own company with no third parties involved is a lot easier, exactly those few forms plus ID2 to send, although you will need the ID1/ID2 certified (check if you can use ID3/ID4 forms instead) and I believe some arrangements with HMRC to be able to file SDLT directly.
Proper structuring the ownership in the limited company is another question that’s completely our of my DIY expertise.

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Daniel Haestier

Member Since June 2024 - Comments: 1

5:46 PM, 24th June 2024, About 2 years ago

How do you compete the TR1 form though? Esp. if you have a director loan and you don’t want to be paid back straight away?

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Ilker Sertler

Member Since July 2022 - Comments: 2

11:20 PM, 24th June 2024, About 2 years ago

I signed both the seller (as individual) and the buyer as the director of the company. I put a sale price which I was asked to justify by the accountant. I recorded the sale price in the books as director loan to company.

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