Share this content
6

incorporation of property rental busniness

Didn't find your answer?

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!

Replies (6)

Please login or register to join the discussion.

By Duggimon
12th May 2017 16:39

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

Thanks (0)
avatar
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

Thanks (0)
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 ...

Thanks (0)
By msaid
12th May 2017 20:55

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

Thanks (0)
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.

Thanks (1)
avatar
By jonibarnes
12th May 2017 21:43

Thanks for the replies all very helpful

Thanks (0)
Share this content

Related posts