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F. Naz
F. Naz, Chartered Accountant
Category: Business
Satisfied Customers: 5319
Experience:  Doing Chartered Accountancy
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Question regarding my own company Creation. I own a property

Customer Question

Question regarding my own company Creation.I own a property and I am looking to put the property Into the company company.. Is this a difficult Thing to Accomplish?
. And would it cost money to move it?I see website online for company Creation,
. is This something I could use?
. And would I need any of the optional extras like Vat registration?
Submitted: 9 months ago.
Category: Business
Expert:  F. Naz replied 9 months ago.

Hello

Kindly let me know that you want your property to put into the company or you just want to change the ownership of the property , kindly provide details so I can look into the matter, thanks.

Also let me know that you want answers from accounting aspects or tax aspects?

Customer: replied 9 months ago.
Hi, thanks for getting back to me so fast.I want to put the property into the company.And any info on accounting and tax would be appreciated.
Expert:  F. Naz replied 9 months ago.

Please let me know that in which country you live as well as is this your real life scenario or some assignment question?

Customer: replied 9 months ago.
uk,and yes this is a real scenario.
Customer: replied 9 months ago.
I cant ring at the moment sorry,would appreciate a written response.regards,
Expert:  F. Naz replied 9 months ago.

Okay, I can provide you information on this and reference from where i will get that so if you agree on this then let me know so I can place an offer , thanks.

Customer: replied 9 months ago.
i thought I had already paid for the answers you provide?
Expert:  F. Naz replied 9 months ago.

You have paid a amount but that is not enough for such kind of work, kindly let me know so I can provide you a fair price, thanks.

Customer: replied 9 months ago.
OK Naz,how much?
And will you send a link to pay from this page?Regards.
Expert:  F. Naz replied 9 months ago.

I am sending you the offer please accept it , thanks.

F. Naz and other Business Specialists are ready to help you
Customer: replied 9 months ago.
I would appreciate it if you could answer my first questions,I will have some more after,regards,
Expert:  F. Naz replied 9 months ago.

I will answer your question in next 24 hours, thanks.

Expert:  F. Naz replied 9 months ago.

Please read the following information and let me know whether this answers your question or not?

1.

Transfer personal assets into your company

When you start your business you may want to transfer some of your existing personal assets into your company. This is straightforward, as long as you take a pragmatic view of the value of the assets.

If you have an asset that was originally purchased for personal use you’ll need to establish the current market value of the asset. You cannot claim the full value of the asset, unless it was purchase solely for use by your new business. A straightforward method to establish the value of a used asset is to research the second hand market – eBay is a simple way to do this.

Once you have determined the value of the asset, you need to prepare an invoice from yourself to your company listing the items and cost of each separately. A simple invoice created using a word processor or spreadsheet will suffice, you just need to show on the invoice your name, address, invoice to (your company), invoice date, the items and their costs. If you have the original purchase receipts for the item, it is useful to attach them for your company records.

Once you have transferred the money for the items on your invoice from your company account to your personal account, you can then enter them into your bookkeeping screen. Click on the Enter new transaction then Asset purchase and enter the details. Select zero rated for the VAT category.

Reference :- http://www.inniaccounts.co.uk/guide/transfer-personal-assets-into-your-company/#.WAY0DeB97-s

2.

If you transfer land or property to or from a company

When property is transferred to a company, SDLT may be payable on its market value, not the consideration given. For example, if a property has a market value of £200,000 but the company only pays a consideration of £100,000, SDLT will still be payable on £200,000.

This applies in either of the following situations, the:

  • person who transfers the property is ‘connected’ with the company - the definition of a connected person covers relatives and people who’ve some involvement with the company
  • company pays for the property with shares in the company (partly or wholly) to the person making the transfer, where that person is connected to the company (but not necessarily the acquiring company)

Higher rates of SDLT may be charged from 1 April 2016 on purchases ofadditional residential properties.

Reference:- https://www.gov.uk/guidance/sdlt-transferring-ownership-of-land-or-property

Customer: replied 9 months ago.
Thanks,Is there any way or circumstance that would have me avoid the SDLT, ON A PROPERTY I OWN BEING MOVED INTO THE COMPANY I WILL OWN? And is this SDLT charge the only charge you can think of when doing this?If I were to buy another property soon, I would likely pay SDLT on its purchase anyway.
if I then moved it into the company, would I be charged SDLT again?Should I therefore buy the property after I create a Limited Company? and buy it with the company I own instead?On another subject, once this is all up and running,
I should be taxed 20% corporation Tax?
Also, can I release the profits from my company? how should I do this, as a wage to myself??kind Regards,
Expert:  F. Naz replied 9 months ago.

Kindly let me know that did my information answered your initial questions? so I can focus on your other requirements which you have just asked, thanks.

Customer: replied 9 months ago.
Do I need to do an invoice for the house?
if so, you make it sound like an easy transfer from one of my accounts to another. however, where does the SDLT come into play if its that easy?? or is this a different process? if so how do I go about it?Also you said something that confused me.
"Once you have transferred the money for the items on your invoice from your company account to your personal account, you can then enter them into your bookkeeping screen"
Q. Is this transfer not from my "personal" to my "company" account?IN TERMS OF COMPANY CREATION, YOU DID NOT RESPOND TO THIS QUESTION, SHOULD I USE A WEBSITE TO DO THIS?Regards,
Derek.
Expert:  F. Naz replied 9 months ago.

You want to know that how the company will be created? in your last requirement?

Customer: replied 9 months ago.
what do you mean last requirement?I am going home now I will be home in about an hour,Regards,
Expert:  F. Naz replied 9 months ago.

By last requirement I mean this one :-

I see website online for company Creation,
. is This something I could use?
. And would I need any of the optional extras like Vat registration?

Customer: replied 9 months ago.
Expert:  F. Naz replied 9 months ago.

So what do you mean by this last requirement , please elaborate your need in the last requirement, thanks.

Expert:  F. Naz replied 9 months ago.

Hello

Kindly read the information on the following link. It will resolve much question of yours and if there is still left any then let me know, thanks.

Link:- http://www.economicvoice.com/a-guide-to-tax-on-limited-company-property-transfers/

Expert:  F. Naz replied 9 months ago.

Also let me know that by property you mean land or something else?

Customer: replied 9 months ago.
there are many questions that I have asked you that are still awaiting answers.how I should go about setting a limited company up is only one of the questions.please read the dialog and kindly answer my questions already asked please.regards,Derek
Expert:  F. Naz replied 9 months ago.

The link which I provided in last to you will answer many of your questions and some of them will be answered by me, thanks

Customer: replied 9 months ago.
ok I will be going home again shortly, I will check the link once there,regards,Derek
Expert:  F. Naz replied 9 months ago.

Okay, read the information on the link it is quite in detail and then let me know that which question are left to answered, thanks.

Expert:  F. Naz replied 9 months ago.

For the rate on whcih you will be taxed please see the below link:-

https://www.gov.uk/corporation-tax-rates/rates

For How to withdraw funds from your business please see the below link, thanks.

http://www.telegraph.co.uk/finance/businessclub/11206409/How-to-legally-withdraw-money-from-your-own-business.html

Expert:  F. Naz replied 9 months ago.

For how to setup a limited company please visit the following link and read all 7 points by clicking next at the bottom of the page, thanks.

https://www.gov.uk/limited-company-formation/overview

    Customer: replied 9 months ago.
    Thanks for the links,
    I will read them all and get back to you when I canRegards,Derek
    Expert:  F. Naz replied 9 months ago.

    Okay, you are always welcome, thanks.

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