Advise changing BTL to LTD Co..
Discussion
I currently have a limited company that owns one commercial property outright
I also have a BTL in my personal name; with an approx 60% LTV mortgage ,, which I plan on paying off tomorrow, and then transferring it into the limited company's name.
The reason for this is the new stamp duty changes, I'm currently LWP but I am looking to buy a house with my partner.
Is there any negatives to this, there's something stopping me, and thinking just to sell the BTL and concentrate on the commercial properties; but the family has been in 3 years are quite settled etc, paying off the mortgage does drastically reduce the budget for my own house.. Just very unsure which way to go.
I also have a BTL in my personal name; with an approx 60% LTV mortgage ,, which I plan on paying off tomorrow, and then transferring it into the limited company's name.
The reason for this is the new stamp duty changes, I'm currently LWP but I am looking to buy a house with my partner.
Is there any negatives to this, there's something stopping me, and thinking just to sell the BTL and concentrate on the commercial properties; but the family has been in 3 years are quite settled etc, paying off the mortgage does drastically reduce the budget for my own house.. Just very unsure which way to go.
Seriously, how much is the +3% Stamp Duty going to cost you? Because if you're buying another small place it's going to be the square root of FA compared with all the other costs and issues you'll give yourself.
Flog the BTL, save yourself some Stamp Duty, buy a decent house with no (or smaller) mortgage and live in it free from CGT.
Flog the BTL, save yourself some Stamp Duty, buy a decent house with no (or smaller) mortgage and live in it free from CGT.
Ozzie Osmond said:
Seriously, how much is the +3% Stamp Duty going to cost you? Because if you're buying another small place it's going to be the square root of FA compared with all the other costs and issues you'll give yourself.
Flog the BTL, save yourself some Stamp Duty, buy a decent house with no (or smaller) mortgage and live in it free from CGT.
I was in the process of buying a place at 275k and due to complete this month but the vendor pulled out. So on a similar property again the extra stamp is 8k++Flog the BTL, save yourself some Stamp Duty, buy a decent house with no (or smaller) mortgage and live in it free from CGT.
Solicitors fees £400.. Prob same again for the accountant... that's the reason for this thread, understanding what other issues I'll give myself and if it's really worth keeping hold of it
Rangeroverover said:
maxest said:
Sale price is 118k.. So under the threshold?!
3% starts from zero not £125,000 as per normal stamp dutyI was wanting to get the property transfer completed today, so it wouldn't fall into it anyway
You can't just "give" the property to a Ltd Company? You would have to effectively "sell" it in to it surely.
Anyway even if you manage to do that, when you do want to sell it in the future, the proceeds will go to the Ltd Co not to you personally. Which is then a separate set of corporation tax issues if you leave the cash there, income tax concerns as you take it out.
Anyway even if you manage to do that, when you do want to sell it in the future, the proceeds will go to the Ltd Co not to you personally. Which is then a separate set of corporation tax issues if you leave the cash there, income tax concerns as you take it out.
kev1974 said:
You can't just "give" the property to a Ltd Company? You would have to effectively "sell" it in to it surely.
Anyway even if you manage to do that, when you do want to sell it in the future, the proceeds will go to the Ltd Co not to you personally. Which is then a separate set of corporation tax issues if you leave the cash there, income tax concerns as you take it out.
Correct I'm selling it to the company for 118kAnyway even if you manage to do that, when you do want to sell it in the future, the proceeds will go to the Ltd Co not to you personally. Which is then a separate set of corporation tax issues if you leave the cash there, income tax concerns as you take it out.
No plans to sell it at all.. But I appreciate what you are saying
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