Rental property in Ltd company

Is it possible to transfer property to limited company by creating trust

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My client a higher rate tax payer is considering transfering property to a limited company. Is there any reason why this can't be done by creating a trust for the benefit of the company which would save the cost and effort of conveyance and remortgage.

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By ireallyshouldknowthisbut
03rd Jan 2023 13:34

I would be surprised if the lender would agree to having their security transferred.

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By David Ex
03rd Jan 2023 14:00

How do the costs of operating a trust and a limited company compare to any tax savings?

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By Blackburn
03rd Jan 2023 14:29

I think the reason most people don’t do this is because a disposal into a ltd company like this will trigger both a CGT charge which cannot be held over and a SDLT issue.

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Replying to Blackburn:
By ireallyshouldknowthisbut
03rd Jan 2023 15:41

I think the way its done is to ignore all of that, and the lender, and pay £10,000 for a trust document that purports to magic away all this stuff, and must be good as they got a dodgy barrister to say it was fine and charge 5 figures for it.

Or at least how the ones I have seen have gone down....

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Replying to ireallyshouldknowthisbut:
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By Hugo Fair
03rd Jan 2023 16:20

... and keep on going down (like a plastic boat heading for a bath's plughole)!

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paddle steamer
By DJKL
04th Jan 2023 10:37

The great thing for the accounting industry, and in particular accountant's fees, is within 5-15 years from now clients will likely be clamouring to extract their rental properties from their companies.

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