7:01 AM, 15th July 2019, About 3 years ago 3
My wife and I bought a property on 28th September 2009 (cash £170,000) to live in. We moved out from this property on 16th November 2013 and it has been let out continuously from December 2013 until today. My wife and I have been managing this property ourselves.
The letting relief and Private Residence Relief is changing on 6th April 2020 which means that we will incur higher capital gains tax bills if we sell after this date.
The property has an outstanding mortgage of £144,411 on an interest-only mortgage and early repayment charge £4182 is payable if we sell before 30th April 2020. The property also has a second charge from Castle Trust known as “Buy to Let Equity Loan” where I have to repay £44,000 (loan amount) plus 40% of sale value – £220,000 (the property value at the time the loan was made)
The property is now estimated to be worth £300,000
My wife and I have a recently registered SPV limited company which will buy/hold/rent out properties. We are the only 2 directors of the company
My questions: What are the tax implications for us and our SPV limited company if we wish to sell/transfer the property to our own SPV limited company before 6th April 2020? How can we mitigate our tax bills? How do we transfer our own cash savings to our SPV limited company as deposit to purchase the property?
Thank you for your time and replies.
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