Can I transfer my residential home into a conpany?

I own my home with zero mortgage and want to rent it out on Airbnb or other short term let.

Didn't find your answer?

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)

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By Accountant A
17th Sep 2018 00:56

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

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RLI
By lionofludesch
17th Sep 2018 09:58

Sure - you can do it. No problem.

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Replying to lionofludesch:
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By Portia Nina Levin
17th Sep 2018 11:50

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%...

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By Ruddles
17th Sep 2018 10:22

Where are you going to live once you've transferred the property to the company?

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By ireallyshouldknowthisbut
17th Sep 2018 11:39

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.

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By frankfx
17th Sep 2018 12:00

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..

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By propertythoughts
17th Sep 2018 12:19

Thanks frank
Not quite sure you grasp the question, but appreciate your time!
We are accidental landlords as a result of the slowdown in the residential property market. As it’s our main residence and home, hence no CGT it makes sense to do this.

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Replying to propertythoughts:
RLI
By lionofludesch
17th Sep 2018 12:23

Well, companies certainly pay no CGT.

So are you still going to live there or not ? You keep saying it's your residence.

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By Portia Nina Levin
17th Sep 2018 12:32

Frank's notoriously slow on the uptake.

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By propertythoughts
17th Sep 2018 12:32

Nope we will be moving out. This property will be let on a furnished holiday let basis

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paddle steamer
By DJKL
17th Sep 2018 12:38

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?

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By propertythoughts
17th Sep 2018 12:46

The motivation is to reduce personal liability, and ensure that the only borrowings through mortgages in my personal name are for a family home. This gives greater protection in my view

Hope this makes sense

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Replying to propertythoughts:
ALISK
By atleastisoundknowledgable...
17th Sep 2018 13:15

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.

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Replying to propertythoughts:
RLI
By lionofludesch
17th Sep 2018 13:36

propertythoughts wrote:

Hope this makes sense

None at all.

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By propertythoughts
17th Sep 2018 16:09

Fresh air helps

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By Montrose
17th Sep 2018 15:59

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

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By Joe Soap
17th Sep 2018 17:04

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.

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By SteveHa
17th Sep 2018 20:54

Why has no-one noticed it's to be transferred to a "conpany". So, looking for a con.

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