phil_sleight

David I think what he's trying to ask is whether the rent he pays would be subject to the same restrictions as mortgage interest, I.e. relief for basic rate tax. In which case the answer is no

All of it if you are holding it as trading stock..

No.

Unconsciously incompetent is the first stage... thats all im saying!

People trying to learn tax in a day. Lol

Tax funnily enough! UK, international covering property, businesses and estate planning. I co-run a firm of chartered accountants in Sussex / Surrey.

Initially I thought "oh god not another stupid question". But I had to think at least a couple of minutes to work out what was missing form your analysis so thanks for the considered question! The easy bits are: CGT/Corp Tax is £nil as there is no uplift in value - as you quite rightly mentioned. Stamp Duty will be chargeable twice as two transactions, but may be worth suffering if no income tax. The less obvious part is that income tax would actually be chargeable on the gift of the house from the company to you as it will be treated as a distribution-in-specie. So in eff

Hmrc will tell you to seek advice elsewhere.

Ltd cos pay corporation tax on capital gains. And any transaction with a connected person will be replaced with market value if it is at undervalue. Those who draft legislation aren't stupid...

I'll happily provide on-going advice if we engage as your accountant

Give me a shout if you like Garry, I advise a number of property investors. I've worked at Big 4 and now have my own practice in Sussex/Surrey. Phil Sleight 07531 903508

Hi, Residential property sales are exempt from VAT, unless its first sale of a new build, so if it is at auction, its almost definitely going to be without VAT. Commercial and mixed properties are different. Are you buying using a ltdco? If you need tax or accountancy support let me know. Phil 07531903508

You can transfer and use her cgt allowances, but if there is a mortgage then there would be an SDLT charge as it is based on debt assumed by your wife even where no money changes hands Phil Sleight 07531903508

If you sell now it would be exempt from CGT because of main residence relief. If you keep, the CGT exemption starts to reduce so even if prices stagnate the CGT starts creeping up as exemption is applied on a pro rata basis of actual occupation. You could "bank" your CGT exemption now based on market value of property by transferring to a ltdco, and also get full relief on mortgage interest, but the SDLT and conveyancing costs will be a hit which may take 2 or 3 years of tax savings to make it worthwhile. Obviously ltdco only really works if you would want to gold long term / reinvest, ot

you may want an SPV ltd co for each property so that you could sell each property by selling the shares of that SPV, saving buyer SDLT. Obviously that could be a bit more costly with compliance costs (10 sets of accounts), so you could start off with all in one company, and then hive them down to a SPV subsidiary before selling the shares of that SPV to a buyer. It would increase conveyancing costs because of the extra transaction steps, but should be less than running 10 spvs from day 1. With your business partner, you may want to have your own ltdco as shareholder of the SPV doing the