13:49 PM, 27th February 2020, About 3 years ago 20
I have been a part time BTL landlord for many years managing my portfolio of 10 plus residential properties myself, all of which are mortgaged . With the advent of the zero tax relief policy I decided to go Ltd Company route.
I placed 7 of my properties into the limit company leaving 3 in my own name.
I have since given “b” shares to my 6 adult children, but retain control by having “A” shares.
I was always advised, and read that HMRC do not recognise personal BTL investments as a “Business” the prospect of this in relation to the new tax system was daunting to say the least hence my decision to go Ltd.
I have today been advised by my accountant that, because I did not move the “whole” personal portfolio over at the same time I may not be entitled to corporation relief and could incur a huge Capital Gains tax burden !!……I paid the stamp duty of £60.000 at the time.
I am, to say the least, astounded because no one ever advised me of this and my understanding was and still is that HMRC do not accept personal portfolios as a “Business” how can the inland revenue change its mind as it appears, in “retrospect” and now almost 2 yrs later designate my previous activities as a Private BTL landlord as a Business?
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