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Gifting a commercial investment property

The family own a single commercial property which is rented to a number of tenants.

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The property is valued at c£600,000 and produces a gross annual income of £40/44k. There is a long list of maintenance items outstanding including roof works. 

The sole surviving parent wishes to gift or transfer equity of the property but maintain some management involvement. Questions is:

- create a company and issue shares;

- gift;

- part transfer of equity.

- trust.

and What the tax / cost implications might be. Happy to add more colour if required. 

Thank you

Replies (11)

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By WhichTyler
08th Jan 2019 10:50

What is your role in this?

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Replying to WhichTyler:
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By Fletchpsb
08th Jan 2019 13:05

I will be involved in management going forward on behalf of the beneficiaries and assisting with structuring and putting the Advisors in place.

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By Accountant A
08th Jan 2019 11:12

Fletchpsb wrote:

Happy to add more colour if required. 

I suggest that the sensible thing to do when dealing with a £600,000 asset is to take professional advice and not hope that you stumble upon some competent internet random who has valuable professional knowledge that he/she feels they'd like to give away for free.

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Replying to Accountant A:
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By Fletchpsb
08th Jan 2019 13:07

I Agree entirely and am looking to put that team together.

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Replying to Fletchpsb:
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By Accountant A
08th Jan 2019 15:39

Fletchpsb wrote:

I Agree entirely and am looking to put that team together.

I would have thought that a "team" was overkill. A half decent accountant and a solicitor ought to be able to manage it between them. Maybe not if you are putting complex trust arrangements in place ....

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Hallerud at Easter
By DJKL
08th Jan 2019 14:21

SDLT/VAT/CGT/IHT- all need considered re proposals and all need detailed calculations/evaluations re what routes may be most advantageous and how each impacts.

A multi stage move of the asset may also be required/assist.

You need a decent accountant and a decent solicitor involved and also a good appreciation of the art of the possible re any attaching loans and attitude of existing lenders/replacement lenders.

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Replying to DJKL:
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By Fletchpsb
08th Jan 2019 15:20

Thank you for the response.

In preparation for these I advised the property be valued in q3 last year. Completed. Principally to see What SDLT liability there would be if the property was taken from private ownership into a company.

The group ha e some ideas as to what they would like to achieve and are precisely at that point of wanting to cost the various options in order to achieve the goal but also be informed about implications going forward.

In short looking for an accountant who has experience in this field and can assist in Structuring. This might not be the right forum to find that though.

Thank you for your response.

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Replying to Fletchpsb:
Hallerud at Easter
By DJKL
08th Jan 2019 16:34

Try a wanted post on A Web (there is no longer an opportunities section)

Give people an indication of rough geographic area and pretty sure someone on here will send you a PM re the work needed/arrange to meet.

I have met prospective clients, met via A Web, for coffee and chats and whilst no longer in client acquiring mode these days (I more want to place my clients with local firms I know ) am pretty sure some others on here will be.

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Replying to DJKL:
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By Fletchpsb
08th Jan 2019 18:57

Thank you DJKL

Appreciate the advice and guidance.

Best

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By Matrix
08th Jan 2019 17:25

You could look on the Tax Advice Network for an adviser.

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Replying to Matrix:
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By Fletchpsb
08th Jan 2019 18:58

Thank you. Will do that

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