DIY conveyancing for transferring own house to ltd company

DIY conveyancing for transferring own house to ltd company

21:37 PM, 14th September 2022, About 3 weeks ago 3

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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



Comments

Mark Alexander - Founder of Property118 View Profile

21:47 PM, 14th September 2022, About 3 weeks 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?

Ilker Sertler

13:36 PM, 15th September 2022, About 3 weeks 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.

alocjtoi

14:51 PM, 17th September 2022, About 3 weeks 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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