Transfer of Equity
Take an investor in property who has an income of £160,000 and a number of flats bought in the late 1990’s typically worth three to four times their original cost.
The investor wishes to make ongoing payments of £20k to charity,
Some of these flats have a higher rental yield than others and they wish to sell one of the lower yielding ones.
Take one property that cost £50k and is now worth about £190k.
Could they transfer a third of the equity in the flat they wish to sell each year to a charity?
Ideally to a body like the Charaties Aid foundation. It is possible to transfer shares to this body which sells them and the giver receives tax relief . They can then use the proceeds to make payments to a charity of their choice.
Say the giver gave the flat to the charaties aid foundation in three steps.
So say transferring a third in March 2013 . Then a third March 2014 and finally a third in April 2014.
So for this tax year and the following two tax years taxable income would be reduce by about £60k each.
In April 2014 the property would be wholly owned by the Charaties Aid Founation and the giver would be able to use the sales proceeds to give to charaties of their choice.
The goal beeing to use the sales proceeds of the flat to give to charity whilst getting income tax relief and avoiding CGT.
- Seeking advice: Paying Funeral Costs 507 6
- Sole Director Limited Company and Childcare..hat is most tax efficient way to do it? 278 4
- Late registration for MOSS 201 4
- Professional Clearance 1,012 24
- Self employed care worker 411 9
- Self Assessment statement credit balances unallocated and getting repayment 240 5
- Client right to working papers 162 2
- Employee leaving mid month and Payroll Manager 326 7
- Illegal share transfer 424 5
- Audacity 853 16
- Uk vat on supply of training services to South African Airline? 147 2
- Company Strike off 1,799 30
- Soca or not to soca 2,076 34
- How to deal with an employee's at work car parking cost, paid for by the company 372 3
- Estate admin practicalities 209 1
- Cloud Accounting Software for Practitioners 1,476 23
- Duplicate employments caused by works numbers on Sage 311 5
- Cheapest PI insurance for accountant available? 1,774 31
- Joint owners of rental properties 343 6
- Capital stated on incorporation too low by several orders of magnitude. 330 2
- NHS finance professionals 526
- VAL231 406
- Mother and son property ownership 364
- Auto Enrolment and Foreign employers 353
- Foreign Pension Contribution 328
- Fines for late submission of the RDR 302
- Employee's statement of sickness (SC2) form - no longer available as downloadable pdf 279
- vat gross profit percentage margins 267
- Incorporated LLP partners, CIS and IR35 262
- Pre Season Invoice dated September how do you treat the VAT as not due until May 16 251