transfer of shop property from one Company

Company 1 has property registered in its name. Want to transfer with no tax to newly formed company

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My company registered 2007 still active has a property registered title in its name, of a property i purchased ad transferred over to it for shelter purposes and so that the Company may use it with my permission as collateral if required. This was never required. The Company has not traded for 2 years and has issued dormant accounts to Companies House. The Property has no mortgage and a small tax debt is being paid off every 3 months. To protect the property from any future liabilities  I want to transfer the propery from the original Company to a new Company set up in my wifes name. I wish to do this in the most advantageous way with little or no tax liability.

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By David Ex
24th Apr 2024 18:02

flood wrote:

I want to transfer the propery from the original Company to a new Company set up in my wifes name. I wish to do this in the most advantageous way with little or no tax liability.

Thanks for letting us know.

Do come back and share your accountant’s thoughts when you’ve have a chance to discuss with them.

Thanks (8)
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By Bobbo
24th Apr 2024 19:28

flood wrote:

The Company has not traded for 2 years and has issued dormant accounts to Companies House. The Property has no mortgage and a small tax debt is being paid off every 3 months.

Payments being made in respect of a tax debt... you sure that company is dormant?

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Replying to Bobbo:
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By David Ex
24th Apr 2024 19:39

Bobbo wrote:

flood wrote:

The Company has not traded for 2 years and has issued dormant accounts to Companies House. The Property has no mortgage and a small tax debt is being paid off every 3 months.

Payments being made in respect of a tax debt... you sure that company is dormant?

No rates, repairs, service charges, utilities, or insurance either. My kind of property.

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Replying to David Ex:
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By flood
24th Apr 2024 19:44

paid rates and utilities of course but not traded for 2 years

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Replying to flood:
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By Leywood
24th Apr 2024 19:48

Not trading does not = dormant

You clearly need an Accountant/tax advisor & legal advice

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By Leywood
24th Apr 2024 19:47

Thanks for telling us.

Doesnt sound dormant.

BTW this forum isnt a free tax advice line for business owners.

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By ireallyshouldknowthisbut
24th Apr 2024 20:11

Post of the week and its not even Friday.

"Good luck with that"

As they say

Still, no doubt a fat fee for somone to sort out that one. Well done fine sir for your services to my profession and who knows, I imagine a very generous contribution to HMRC.

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By Tax Dragon
24th Apr 2024 20:42

Is David right? Will you post back?

Thank you if so. I'm particularly looking forward to reading your accountant's comments on inheritance tax.

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Replying to Tax Dragon:
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By FactChecker
24th Apr 2024 20:47

... but .. but .. but they're MY companies and I thought that 'an Englishman's home is his castle' applies to whatever I do with the companies!

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By Paul Crowley
24th Apr 2024 22:25

My guess i that you did not take advice on putting the property into the company. We sort of assume that you mean a building.
How can your wife afford to buy the building? As in can she put into her company enough money for the company to buy the building at its full market value.
This does have a whiff of planning prior to insolvency.
If so then get an IP involved.

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By flood
25th Apr 2024 09:01

There is no insolvency Involved. I intend to re-establish trading. After 2 years of ill health I am ready to continue. My wife does not have sufficient funds to buy the property (building) at full market value. Perhaps using the Shareholders Fund could be used ? Or some way of transferring Company to Company? (my wife is sole director of another Company). Any initial advice would be helpful.

I think Leywood is wrong with his comments , In 50 years of trading I have found most Accountants quite fun I have been out on the town with a few . They are usually not dull grey men in suits at all. I have paid my way all my life and no doubt after seeking help someone indeed is going to get a 'fat fee' sorting this out for me :)

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