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Transfer Deed on transferring BTL Property to LTD Company

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Hi all,

My solicitor has asked me:



Can you please confirm what figure you intend to reflect in the Transfer Deed, and on which SDLT will be charged?  Is it the £X value of the Property?  I know you are paying that by way of director’s loans but, have you obtain tax advice as to how the consideration should be reflected in the Transfer and the amount of tax it will attract? 

I believe this relates to Panel 8. of the transfer deed:

Panel 8: Is where the consideration for the transaction is detailed. There are a number of options for your conveyancing solicitor to select, inclusive of: 
- The monetary value is inputted confirming the monies exchanging hands for the transfer. 
- There is also the option to confirm the transfer is not for any monetary value. For example the transfer may be a gift and, as such, there is being no money exchanged in respect of the transfer, making this option appropriate. 
- In addition, there is the option to advise ‘other’, which can be inputted as appropriate where there is a form of consideration, however, the same does not take the form of monetary value. 

If I am selling my property my company for £200,000, the company is getting a mortgage of £150,000 and I "lend" them the £50,000 via a Directors Loan. In my mind this is very simple.. The consideration is £200,000 as the directors loan is still monetary value. The stamp duty would be whatever is liable on all £200,000 at time of completion. For sake of ease I would say £7,500 if it completes 01/10/2021.

Are my thoughts correct?



Edit: From online:  However under Section 53 of the Finance Act 2003 for transfers between an individual and their company the chargeable consideration for such transfers will be not less than the market value at the effective date, of the property transferred, irrespective of the consideration (or lack of it) actually passing.

This is what I expected.

Edit 2: I need converyancing help in filling out AP1 and TR1 forms. Assistant: Thank you. Can you provide any more details to (justanswer.co.uk) 

Seems to have the same question answered as I suspect too.

Still looking for a bit of reassurance.

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