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Property Transactions

Implications for tax etc

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The client's company has built a number of properties for sale to residential owners.

Proposes to set up a subsidiary company wholly owned by the existing company which it will have one of the constructed properties transferred to it and let on a commercial basis under a buy to let arrangement to be arranged. This is somewhat like transferring stock from one entity to another within a group.

It appears to me that this will create a small group of companies and that there may be possibilities for deferring SDLT and CG on the transfer between the companies. Are there any pitfalls that anyone else can see in this arrangement?  The main purpose is to obtain a more reasonable rate of finance for the arrangement of the buy to let mortgage.

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By David Ex
18th Nov 2021 18:44

This question has been raised in the last week if you use the search facility.

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By David Ex
19th Nov 2021 00:28

David Ex wrote:

This question has been raised in the last week if you use the search facility.

This is it:

https://www.accountingweb.co.uk/any-answers/building-holding-buy-to-let-...

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