director-shareholder wants to extract buy-to-let house owned by his limited company (non-trading company) and have it gifted to his daughter. Any ideas for tax-efficient ways of achieving that or is it mission impossible? Thanks.
james
Replies (4)
Please login or register to join the discussion.
I believe
there is a way of achieving this unless it was finished off in the budget. It uses a tax stratedgy and therefore has risk attached to it.
If you are interested further please email me [email protected] or call 01883 708090 and I will check it out
Need more info
What was the purchase cost?
Is there a revaluation reserve?
Whats the current market value?
Is the directors loan in credit?
What are the reserves?
its a pickle
Well not that i know to much about the situation, but what about setting up a holding company or sorts, and creating a CGT group, with the daughter being a shareholder in one company, isnt it the easiest option, and let her have the company with the house in it, or do u want the house out of the companay altogether? is gifting it an option or does it have to be done straight away?
information
hi
thanks for the reply.
Cost of house was £250k
Revaluation reserve £150k
Current market value appx £800k
Directors loan account in credit by £20k - loans out of question as S419 over £100k based on capital gain appx £500k (but if loan w/off then S419 does not apply and BIK taxed at 22.5% resulting in income tax appx £30k).
I was thinking about dividend to a company set up for the purpose which will control the original company but I am not sure about the mechanics and tax implications.
And what about the IR reaction re avoidance?