Rental property in Ltd company

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

Didn't find your answer?

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.

Replies (6)

Please login or register to join the discussion.

By ireallyshouldknowthisbut
03rd Jan 2023 13:34

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

Thanks (0)
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?

Thanks (0)
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.

Thanks (0)
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....

Thanks (0)
Replying to ireallyshouldknowthisbut:
By Hugo Fair
03rd Jan 2023 16:20

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

Thanks (1)
paddle steamer
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.

Thanks (0)