Mission impossible?

Mission impossible?

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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

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By pauljohnston
19th May 2008 20:27

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

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By User deleted
13th May 2008 15:22

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?

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By User deleted
14th May 2008 01:03

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?

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By User deleted
13th May 2008 17:37

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?

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