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Sam, Accountant
Category: UK Tax
Satisfied Customers: 13609
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax
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My name is ***** *****, I am a landlord, I have 5

Customer Question

My name is ***** *****, I am a landlord, I have 5 residential lets and a holiday let (in process of being bought). Most are under minimum stamp duty. I have no mortgage. Can I transfer them into a limited company without paying stamp duty, before financial year end. I doubt there has been any significant capital gain on the properties.
JA: Thanks. Can you give me any more details about your issue?
Customer: Did our messages cross? I would like to see if I can transfer my property portfolio into a limited company before the year end without paying stamp duty. I presume if its left till after April 6th the situation may be more complicated
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Submitted: 7 months ago.
Category: UK Tax
Expert:  Sam replied 7 months ago.


Thanks for your question

No I am afraid you cannot as you will be changing the legal ownership of the property and I assume the limited company will not actually purchase the properties (money is to change hands) so HMRC state that

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)

and after 06/04/2016 then the rates will be higher and of course you have considered the capital gain position.

Let me know if I can assist further



Customer: replied 7 months ago.
I get that I have to pay stamp duty. However, given that 3 of them are so cheap there is no current stamp duty to pay, i.e. they are only worth £75,000 or so and capital gains in the North East have been under 1% in the last year or so. I was thinking if I could do the transfer before April the 6th, then there would still be no Stamp Duty to pay (though I guess my solicitor has to apply for the rebate etc etc.). So (perhaps) those could be done without penalty. I don't think I would bother transferring the two more expensive properties. Finally, and this counts as an extra question, I guess, for the property I am currently buying, I guess I could ask the vendor to switch who he is selling it to i.e. the private company?
Expert:  Sam replied 7 months ago.


Thanks for your response

This will be treated as one transaction and so will attract stamp duty as the one total as both the disposal and the acquisition from the limited company are the same.

For your furtehr question this will either need to be listed or such or I can offer additional Q & A time once we have fianlsied this question (let me know which way you would like to proceed)



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