Rental Property Company
My client has a growing portfolio of property. Currently stands at £600K (a new purchase going through to bring that up to £750K). The properties are mortgage free.
Although he has no other income he has considered transferring them to a limited company.
Question is if we were to transfer the portfolio to a limited company wholly in exchange for shares could we hold over the gain as part of incorporation relief?
Once the property is a limited company and trading for one year we are able to then place a floating charge over the portfolio (not exceeding 50%) and build his company's net wealth more easily.
Extraction of profit is of little concern as he requires no more income than £30k per annum (mortgage free property of £550K).
Based on transfer value's he will obviously be liable to SDLT
His aim is to manage a portfolio not simply provide an income and wind it down at retirement.
- Taxfiler - SA100 - More efficient? 757 5
- See you all on the other side 770 6
- 12Pay 546 2
- dividends 758 2
- R&D 368 1
- Quarterly Reporting - The Logistics 1,232 17
- Auto enrolment contribution rates 481 3
- How long are you waiting for appeal reply 483 4
- Borrowing money to loan to company 438 1
- Mother as Guarantor for Son's mortgage 583 5
- Seeking a tax case 693 9
- When do we qualify for state pension? 556 4
- Companies house strike off 668 3
- Tax treatment of alterations to property 497 2
- Moving to the cloud 789 9
- Iris open space/doc exchange for SATRs 230 2
- How much to charge for payroll? 953 16
- Unincorporated charity transfer to CIO 235 4
- BTC vs Digita 1,126 29
- Has anyone tried calling HMRC to get tax on dividends put in code? 542 4
- HMRC Joint Filing 581
- Capital Contribution towards a company car 433
- Capital Reduction & Impact on EIS Shares 381
- IRIS and FRS 102 369
- National Minimum Wage issue on Directors joining a Workplace Pension 361
- Marginal rates of tax 357
- Capitalising Finance Lease 348
- Class 2 NI 339
- USA help 329
- Dormant company accounts under FRS 102 314