It’s official – NO NEED to refinance when incorporating into a limited company

It’s official – NO NEED to refinance when incorporating into a limited company

19:00 PM, 1st February 2021, About A year ago 45

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HMRC CONFIRMS you do not have to refinance all your properties when you incorporate your portfolio into a Limited Company.

In this video below, Mark Alexander from Property 118 & I, Ranjan Bhattacharya, break down exactly what this means for property investors!

HMRC Capital Gains Manual CG65745:

https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg65745

 

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Comments

Luke

9:14 AM, 8th February 2021, About A year ago

Hi, we have a portfolio of 9 properties in our personal names, can these be transferred into a business without refinancing if that lender does not normally lend to businesses?

Mark Alexander - Founder of Property118 View Profile

12:05 PM, 8th February 2021, About A year ago

Reply to the comment left by Luke at 08/02/2021 - 09:14
Hi Luke

Possibly, but there is insufficient information here to provide you with the bespoke professional guidance you require. Please book a tax planning consultation via the link below.

https://www.property118.com/tax/book-a-consultation/

Luke

14:02 PM, 8th February 2021, About A year ago

Reply to the comment left by Mark Alexander at 08/02/2021 - 12:05
Already done, just waiting to hear from your consultant!

Mark Alexander - Founder of Property118 View Profile

15:16 PM, 8th February 2021, About A year ago

Reply to the comment left by Luke at 08/02/2021 - 14:02
Thanks Luke 🙂

Ryan Stride

11:51 AM, 14th February 2021, About A year ago

Reply to the comment left by Phil at 01/02/2021 - 23:03
Hello Phil,

In short, yes, SDLT will need to be paid.

You’d be very hard pushed to find a loophole which would result in you not having to pay it I’m afraid.
Upon transfer of the title SDLT is due and therefore it unfortunately makes the transfer a very expensive one.

DP

23:10 PM, 15th February 2021, About A year ago

Reply to the comment left by Mark Alexander at 04/02/2021 - 06:27
can you carry forward an existing loss at the point of transfer of a portfolio into a new company or would you lose it?

Mark Alexander - Founder of Property118 View Profile

5:56 AM, 16th February 2021, About A year ago

Reply to the comment left by DP at 15/02/2021 - 23:10
You would not lose the carry forward rental losses but you cannot use them to offset profit for any other business either

DP

10:06 AM, 16th February 2021, About A year ago

So if I transferred my portfolio into a company I would not be able to utilise the losses ? ( I have no other businesses)

Mark Alexander - Founder of Property118 View Profile

10:08 AM, 16th February 2021, About A year ago

Reply to the comment left by DP at 16/02/2021 - 10:06
The answer is; it depends.

We would need to complete the full landlord tax planning consultation process to be able to answer this question with certainty.

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