So I own my home, with zero mortgage. I want to transfer/sell this to my limited company and then run a furnished short term letting business. We’ve trialled this on air bnb and it’s worked well. I understand I would have to pay stamp duty, but I assume there’s no other tax to consider like CGT!? Also what is the best way to account for the sale/ transfer. The business does not have the cash to buy the property
Replies (18)
Please login or register to join the discussion.
Hello propertythoughts!
My apologies, but as this is a forum for accountants to discuss issues from the profession, I'm not going to answer.
The sister site UK Business Forums has a specific accounts and finance section where your question is likely to find a more receptive audience.
https://www.ukbusinessforums.co.uk/forums/accounts-finance.55/
Hope that's helpful.
Thanks again and best wishes,
AA
I am concurrent.
This is actually a good idea, since companies only pay tax at 19% and individuals may pay tax at up to 45%...
Please do this.
The country is going to need some tax in a few years time and you sound like just the right sort of person to pay it.
You may need a mortgage to pay for professional advice to untangle the tax and commercial mess that you have woven.
But You will not own the property..
Well, companies certainly pay no CGT.
So are you still going to live there or not ? You keep saying it's your residence.
Why , what is the motive to place property in your company is the obvious question your accountant needs to ask you, what are you trying to cure, is the illness worth taking this medicine?
Is what your not telling us that you basically want a mortgage on the property that the company and not you is liable for?
Sure, go for it. See what the bank says about that.
Why not just rent the property [or licence it] for a short term to a company for a modest rent, with the company responsible for repairs etc.
No SDLT or conveyancing charges, but some legal fees for the tenancy agreement.
Possibly [more analysis needed]the first£40000 changeable personal gains on disposal free of CGT.
In either case have a look at terms of property insurance to see how the changes would affect it
You have a couple of choices:
1 - just do what you think is best (and that will save accountants fees for professional advice), or
2 - go and see an accountant NOW and pay him/her what will seem like a lot of money to advise you.
If you do 1 you then only need to wait a couple of years maybe when you will find out that the money that you saved by not going to an accountant now was a very small proportion of the fees you will pay to sort out the mess you will have got into.