gifting property Can my parents gift a property to my Ltd company?

[guym 0]

Hi,

My mother has a mortgage free rental property worth 200k, that she would like to gift to me.

I have a rental property worth 250k. My wife has a rental property worth 350k.

Our income combined with the income from these properties fall within the basic tax rate. 

I plan to buy further investment properties in the future, therefore created a Ltd company seems the best way forward. (If only I’d started listening to The Property Podcast when we first started investing). 

Is it possible for my mother to gift this property to my Ltd company? Or sell it to the company for £1 for example?

Any suggestions would be much appreciated please!

[taxantics 46]

If the property is stood at a gain. your mother would be liable to capital gains tax on the gift which would be treated as being at market value.

There could be tax planning available to allow all of the properties to be transferred to a company on a tax neutral basis.