Transfer of property to director

Transfer of property to director

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A company was setup to develop a farm purchased for £720k in to 16 residential units including the farmhouse. The develop intended to sell all to the open market.

Subsequently he has decided he would like to own the farmhouse himself and wanted to pay £150k for this. The maket value is £400k and his solicitor and accountant have infomred him that he needs to pay market value. He can pay £150k, but would not be in a position to pay £400 at this point, perhaps once the project completes he would be but not until then.

Is there a way around this? What about a deferred payment of the purchase price, or as a connected party would this be seen as a directors loan and suffer S419 tax? Can you pay less than full market value?

Thanks for your help.
Ian Main

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