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LTD Co owes directors money can property be transf

ltd owes director 800k could company property be transferred to director instead of paying money

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The ltd company currently has a directors loan account in credit nearly to the value of 800k. The company owns property which market value could be of around 600k. Can the company transfer the property ownership to the director personal, repaying 600k of the loan? What tax implications will this have to both company and director?

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By SXGuy
16th Apr 2019 11:33

So, theres quite large sums involved, and rather than seek an accountant to pay for their advice, you thought it best to post anonymously and get free advice.

Good luck.

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RLI
By lionofludesch
16th Apr 2019 11:45

You need proper professional advice for these big numbers.

Getting it wrong - perhaps because there's some crucial bit of information you omitted to mention - is likely to be costly.

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Replying to lionofludesch:
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By Tax Dragon
16th Apr 2019 13:34

Quote:

You need proper professional advice...

Starting with the lawyer/IP, if this situation is a result of liquidity issues.

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Lone Wolf
By Lone_Wolf
16th Apr 2019 12:09

The company can transfer the property to the director.

There may be SDLT/LBTT, VAT, capital gains, corporate tax and income tax matters to be considered.

I'd probably go with the advice of lionofludesch.

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Replying to Lone_Wolf:
RLI
By lionofludesch
16th Apr 2019 12:26

Or TTT/LTT in Wales, obviously.

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Replying to lionofludesch:
Stepurhan
By stepurhan
16th Apr 2019 13:40

I know how double Ls are pronounced in Welsh, but how are double (or indeed, triple) Ts pronounced?

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