I own 5 properties in my own name .
I also own a company with 5 properties I wish to close via an MVL.
The company has been using salary sacrifice to pay into a SIPP bot now I have hit the life time allowance.
The properties in the company are worth about 1,5 million and they are mortgage free.
I wish to sell three of them for about 1 million and transer out two via an exspecie dividend after entering a MVL.
I have talked to sereral accountants and got different responses.
There was a concensus if I were to sell all the properties and buy some flats that became holiday lets I would get BAR.
Some were fairly sure the distribution would be treated as capital and tax at 20% but only fairly sure, others told em they did not know,
I do know selling up and changing my trade would save me tax despite paying stamp duty as I would get £100k of BAR relief, I would rather tough just sell up,
I asked my current accountant this question a little time ago so I thought I would ask here as some of the properties are coming to the end of their tennancy period and of the only possible route to avoid paying tax at the dividend rate of 38,1% is to get into holiday lets I would like to know as soon as possible