Transfer of unencumbered property from partnership to a Ltd Co?Make Text Bigger
I have done a fair bit of research on what taxes would be liable on the transfer/gifting of an unmortgaged property owned in partnership (not spouse) to a Ltd Co where the director’s are the same as the partnership.
I understand, hopefully, that there is no SDLT to pay because there is no mortgage outstanding, and because transfers from a partnership do not attracted SDLT anyway.
CGT though is less easy to find an answer on –
1) Transfer the legal ownership for no consideration(Gift?). I can’t find anything to say the property needs to be valued at Market Value for CGT.
2) Transfer at an ‘agreed’ value which does not exceed the base cost of the property.
Should there be no CGT payable in the second circumstance, would it be possible/legal to transfer the title to a Ltd Co at the base cost (and plus the personal CGT anual relief?) and make an entry in the Ltd Co DLA?
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.