Rent family home and move it into Ltd Company?

Rent family home and move it into Ltd Company?

10:15 AM, 17th June 2020, About 2 years ago 14

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I’m currently in the process of purchasing a new family home. The plan is to keep our current family home and rent it out, the mortgage is low on the property (7% LTV to be precise). I currently also have a LTD company which holds 2 rental properties.

Our thinking is that we would transfer the once family home into the LTD company and then keep all the rental properties owned by the LTD.

I would assume that it would be a simple sell (from own name) to LTD company (buy).

Is there anything else worth considering?
Or is it as simple as this?
Is there any methods to reduce any costs when moving the asset across? Can anyone suggest the best routes to take for this?

Please help with any additional info if I’ve missed anything.

Thanks,

Steven



Comments

XPP

10:24 AM, 19th June 2020, About 2 years ago

Reply to the comment left by Paul McCarthy at 17/06/2020 - 10:43
This sounds very straight forward provided one has very low LTV on the property under consideration! I would like to know the SDLT and other personal tax implication since, it is moving into a Ltd Co setup with associated accounting/tax implications.

Buzzfan

9:57 AM, 20th June 2020, About 2 years ago

Reply to the comment left by Luke at 17/06/2020 - 11:08"...If you transfer land or property to or from a company
When property is transferred to a company, SDLT may be payable on its market value, not the consideration given. For example, if a property has a market value of £200,000 but the company only pays a consideration of £100,000, SDLT will still be payable on £200,000.
This applies in either of the following situations, the:
person who transfers the property is ‘connected’ with the company - the definition of a connected person covers relatives and people who’ve some involvement with the company
company pays for the property with shares in the company (partly or wholly) to the person making the transfer, where that person is connected to the company (but not necessarily the acquiring company)"....copied from https://www.gov.uk/guidance/sdlt-transferring-ownership-of-land-or-property#contents

laurasap

12:28 PM, 23rd June 2020, About 2 years ago

Reply to the comment left by XPP at 17/06/2020 - 12:09
Hi XPP would it be possible find out which solicitors you used?

XPP

13:36 PM, 24th June 2020, About 2 years ago

Reply to the comment left by laurasap at 23/06/2020 - 12:28
Hi,
I had the solicitor and the Tax consultant/Accountant worked as a team for this activity. I give below their details:
Specialist Property Lawyers – Simon - enquiries@specialistpropertylawyers.co.uk (in Lindon)
Seymour Luke Lawyers - Philip - philip@seymourluke.com (Birmingham)
Tax Antics - Jerome - jerome@taxantics.co.uk (in London)
Should you choose to use any of them if you mention "SIVA" you may get some discount if you are lucky!
Good Luck.....

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