I have a client who's father-in-law is going to gift a commerical property into a new limited company. Shares will be issued to client and father-in-law. Commerical property will be rented out to 3rd party.
The property plus all costs associated with the transfer of the property into the new company will be treated as capital, but I am not sure of the base value of the property.
a) transfer property in at zero value and then revalue at a later date
b) transfer in at current market value
If anyone could confirm how they would do it in this situation and whether there are any other considerations I have missed I would be grateful.