Where a sole trade or partnership is incorporated, the new company pays SDLT on any property transferred.
However, my understanding is that this problem doesn't arise where property is transferred as part of the incorporation of a 'mutual' amateur sports club, where the property is transferred by trustees to the a new company limited by guarantee. There may, though, be a potential problem where the property is mortgaged and the mortgage also passes over.
Is my understanding correct?
If so, is it because the the trustees are not 'connected' to the new LBG company in the same way that a sole trader is connected to his new personal company?
Thanking you.....
TG