incorporation of property rental busniness

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Is Stamp Duty payable if the property is gifted to the company by the owner?

Done some reading - might be because its friday but I cant get it clear in my head!

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By Duggimon
12th May 2017 16:39

Yes it is. It's also generally a really stupid thing to do.

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By jonibarnes
12th May 2017 19:22

Defintely? Why's it a stupid?

Is it possible to incorporate a property business and not pay the stamp duty?

Reading on the web seems to suggest it can be done but I'm
not clear when or how

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Replying to jonibarnes:
By Ruddles
12th May 2017 19:27

Theoretically - because of a defect in the legislation - it is possible to avoid SDLT by forming a partnership and then incorporating the partnership. As a professional adviser, now under a duty not to advise actions that are against the intention of Parliament, I would not advise that particular course of action.

Of course, if the client happens to come across it himself during the course of some research ...

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By msaid
12th May 2017 20:55

The transfer will not be subject to stamp duty as there is no consideration payable.

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Replying to msaid:
By Ruddles
12th May 2017 21:09

You are correct that no stamp duty will be payable, but only because stamp duty is not chargeable on transfers of property. But assuming that you mean SDLT (as I assume the OP also means) you may want to check the rules on transfers of property to connected companies.

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By jonibarnes
12th May 2017 21:43

Thanks for the replies all very helpful

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