Sale of property from Company's stock to shareholder / directors
Client is a Ltd company that currently has several new builds up for sale. The company is owned by a husband and wife who are also the shareholders.
During the last yr the largest one has been rented out. The bank has a bridging loan, bizarrely secured agst the shareholders home not the development, loads of equity even in this market place. We have only recently been engaged as the company's accountants, previous one having retired.
The bank have now given notice for the loan to be repaid.
Fin'l Advisor has comeback after much hunting with only one option, buy to let mortgage but it has to be in the shareholders name. This means selling the house to the shareholders, crystallising a Co. profit, corp tax, stamp duty and legal fees but can't currently see away round this.
Question: What price shd be used? The potential lenders have done a valuation so that's one possible. The value won't effect the mortgage as it it's rent based but lower will reduce the CT. CGT will be a possible issue later. Their solicitor has suggested they can choose one but my thinking is 'related parties', tfr of profits/value etc