Incorporating joint property into existing Ltd company?
3:08 PM, 9th December 2024, 1 year ago
16
Hello everyone, I am thinking of incorporating a house which is jointly owned by myself and my wife.
We have a limited company that already holds a few HMO properties. The house was bought around 10 years ago for £125k and it has not increased in value since then according to Zoopla. Going on average sold house prices on the street.
How do I prove the house value at the time of incorporation?
I am also looking for a solicitor who specialises in incorporation
Many thanks
H
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Member Since March 2023 - Comments: 1506
11:39 AM, 12th December 2024, About 1 year ago
Reply to the comment left by Vibha Spal at 12/12/2024 – 10:18
If by a company you mean a LTD company, then take the money out as a dividend. The dividend tax rates are: 8.75% for basic rate taxpayers. 33.75% for higher rate taxpayers. 39.35% for additional rate taxpayers.
Member Since September 2021 - Comments: 213
2:58 PM, 14th December 2024, About 1 year ago
Reply to the comment left by Chris Whitehead at 11/12/2024 – 12:45
That is not quite correct (that HMRC are not property experts).
They have an Agency called The District Valuer and the Valuation Office, who are THE experts.
Member Since September 2021 - Comments: 213
3:03 PM, 14th December 2024, About 1 year ago
Reply to the comment left by GlanACC at 12/12/2024 – 11:39
Hi
Dividends are payable out of Profits, which are determined AFTER payment of Corporation Tax.
Member Since March 2023 - Comments: 1506
6:40 PM, 14th December 2024, About 1 year ago
Reply to the comment left by SCP at 14/12/2024 – 15:03
I have no issues paying corporation tax, its personal taxation that gets my goat.
Member Since April 2021 - Comments: 189
7:06 AM, 15th December 2024, About 1 year ago
For value now, ask an estate agent. For value at purchase if you can’t find a comparable, use the HPI
Member Since March 2023 - Comments: 1506
11:58 AM, 15th December 2024, About 1 year ago
Reply to the comment left by Crossed_Swords at 15/12/2024 – 07:06
you could always download the documents from Land Registry for a small fee. This will show the cost of the property.