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SDLT on a transfer to LTD company

SDLT on a transfer of a commercial property (mortgage free) into a LTD company

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Hi there, 

One of my client's father left a commercial property to his son in his final will. The Probate process took little longer than two years, and all outstanding IHT is now paid in full and my client has now received the grant of probate.  The son also have a deed of variation already in place. The son wants to transfer the property to a company that he owns (100%). Can someone kindly tell me if SDLT payable on this transfer?? 

 

Thank you so much. 

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By Justin Bryant
21st Oct 2020 11:59

There have been past questions here (if you do a search) as to whether a DoV can transfer the property to the company SDLT-free.

Assuming that's not possible (as it's too late under the 2 year DoV rule) then s53 FA 2003 will apply a deemed market value for SDLT purposes, so if it's worth >£150k there will be SDLT (but there are potentially ways around that - again if you do a search, but a clue is in the link below).

https://www.bailii.org/uk/cases/UKFTT/TC/2020/TC07881.html

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