With the changes in tax relief for buy to let properties a client is considering a setting up a ltd company and moving the 2 properties into the company..
My understanding is that the assets would need to be treated as disposed of and capital gain tax assesses on the disposal by the individual. Is that correct or is there any other way to utilise the asset without transferring, e.g. paying a nominal fee (as exactly asked by the client)?
Is the mortgage going to change, i.e. transferred to the company as well? Would you know an estimated cost of that?
Are there any other tax implications, apart from being able to claim the full mortgage interest to assess profit on the rentals?
It seems to me that the CGT outweigh the potential benefits, but maybe I am wrong?