11:33 AM, 7th June 2014, About 7 years ago 12
We’ve built up a private property portfolio of 4 houses, all rented on ASTs. Currently, each property has been funded with a cash deposit and separate BTL mortgage using my wife’s salary for the multiplier. We use an agent to get tenants and manage the day to day.
The cash pile is now running low, but we have about 50% equity across the portfolio and we only buy when rents comfortably cover the required borrowings. We’d like to set up a limited company, transfer the portfolio into it and remortgage commercially to release equity to use as further deposits, with the lender providing further advances as and when we find the right properties.
Question is – any idea how the property transfer can be done tax efficiently? If we sell and buy at original purchase price, there will be stamp duty to pay. If we sell and buy at current values, there might be CGT as well. Etc. etc.
I am talking to an accountant, but wondered: Has anyone done this? What did you do? Did you find any pitfalls or workrounds? Tips, suggestions?
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.
Advice and implementation provided by a practising Barrister-At-Law with £10,000,000 of Professional Indemnity InsuranceBook Now
Previous ArticleLandlords will pay a heavy price for the tenants to leave
Next ArticleDeposit Protection Oversight - HELP!
|“Account”||means an account required to access and/or use certain areas and features of Our Site;|
|“Cookie”||means a small text file placed on your computer or device by Our Site when you visit certain parts of Our Site and/or when you use certain features of Our Site. Details of the Cookies used by Our Site are set out in section 13, below;|
|“Cookie Law”||means the relevant parts of the Privacy and Electronic Communications (EC Directive) Regulations 2003;|
|“personal data”||means any and all data that relates to an identifiable person who can be directly or indirectly identified from that data. In this case, it means personal data that you give to Us via Our Site. This definition shall, where applicable, incorporate the definitions provided in the EU Regulation 2016/679 – the General Data Protection Regulation (“GDPR”); and|
|“We/Us/Our”||Means Property118 Ltd , a limited company registered in England under company number 10295964, whose registered address is 1st Floor, Woburn House, 84 St Benedicts Street, Norwich, NR2 4AB.|
|Name of Cookie||Purpose||Strictly Necessary|
|JSESSIONID||Used only to collect performance data, with any identifiable data obfuscated||No|
|__cfduid||This cookie is strictly necessary for Cloudflare's security features and cannot be turned off.||Yes|
|Name of Cookie||First / Third Party||Provider||Purpose|
|__utma, __utmb, __utmc, __utmt, __utmz||First||Helps to understand how their visitors engage with our website|
|_fbp||First||Helps to understand how their visitors engage with our website|