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CGT on transferring property to a company

Is it possible to transfer a personally owned investment property into a limited company without incurring CGT, assuming it shows a profit on cost of course? 

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20th Mar 2012 18:31

No, as the disposal is deemed to have happened at the Open Market Value. Why do you want to do this.

Regards Peter

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By lawco
21st Mar 2012 13:28

Peter, a colleague has a client comprising a couple where I understand they are both higher rate tax payers and neither need access to the return on the property at the present time.  They saw it as a means of controlling the tax rate they pay on the income.  I offered to investigate!

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21st Mar 2012 16:36

Alternative?

Move into the investment property, transfer the existing PPR into the company and let that out instead.

No gain on the PPR (may be some SDLT though) and they maintain an income stream.

Obviously depends on what they ultimately want to get out of this of course.

Just a thought.....

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03rd Apr 2012 09:38

Ramsay [2012] TC 01871 concerning TCGA 1992 section 162

In this recently published FTT decision, s162 relief was denied on the incorporation of a property letting enterprise.

Some commentators have been expressing surprise at this decision.

However, based on any case law I have been able to find, the decision is exactly the one I would have expected.

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