Moving a BTL portfolio into a Ltd company structure with no CGTMake Text Bigger
If you could transfer your properties to a limited company without paying any capital gains on the transfer would you be interested?
Massive thanks to Property118 member Simon Lever for sharing this information. Simon is a Chartered Accountant and Business Advisor.
In Simon’s own words ….
“I refer you to the case of Elizabeth Moyne Ramsey v HMRC  UKUT 266 TC.
The basic facts are that after an appeal it was held that the transfer of a property letting business to a limited company was allowable for incorporation relief for CGT and therfore no CGT was payable on the transfer of the shares into the company.
The tribunal details are here.
You will need to take your own advice on this.
There are downsides in respect of the value of the shares that have to be issued, what value is given to the properties and if the lenders would agree to transfer their lending.
However it is a big step to be able to transfer the properties to a limited company without CGT.
I think this is another option that will possibly help you.”
For a commentary please see the embedded video below.
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