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christopher fitzgerald

Requirements for sale price when selling property I own to my limited company

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Hi folks,

I’ve decided the best way forward for me on my property journey is to trade through a limited company.

I own one property and I’d like to effectively transfer it to my limited company. I’m trying to find out what the requirements are for setting the price. I.e. what’s to stop someone from selling the property at a lower price and therefore paying less in stamp duty?

Has anyone transferred property owned personally to their limited company before?

Many thanks in advance for advice.

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You will need to declare the sale to HMRC and if they believe you have undervalued it they can treat ask you to pay tax on its 'true' value and presumably the same with SDLT. So you need to price it realistically - but obviously at the low end of the range, with perhaps some evidence of why you picked that value.

As long as you are not severely underpricing it you should be ok with a lowish value :) 

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You should also work out whether it is really the right strategy. The legal and tax costs could outweigh any benefit and with a bit of tax planning, you might be able to transfer property to a company on a tax neutral basis.



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