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I assume myself and my ex wife, we have 1 dependant, 20 year old son.
I guess no benefit in adding him
Hi again.As you appear to have been informed already, tax implications will arise from putting property into a limited company or a trust.COMPANYTake a look at the articles here and here which deal with putting property into a limited company. If you do that, there will be CGT implications for you as if you had actually sold the properties at their open market value so you will have CGT to pay and not necessarily the cash to pay it.A company will pay corporation tax on the rental income at 20% and if you want to draw on the profits, you can really only do so in the form of dividends which will have personal tax implications for you. Property investment companies don't benefit from tax breaks given to trading companies and their director/shareholders unfortunately.TRUSTThe tax benefits that used to be associated with trusts have largely gone. If you transfer property into a trust, you will be making a lifetime gift which could result in an Inheritance Tax liability for you if the value of the gift exceeds the current nil-rate band of £325,000. The lifetime rate of IHT is 20%. A capital gain can be deferred if a gift is a chargeable lifetime gift which a gift to a trust is but not in the case of a gift to a settlor interested trust. Take a look at HS295 here for more information.Whilst there may be no immediate IHT liability, if you as the settlor are a beneficiary, the income will be treated as yours in any event. Take a look at HS270 here for more information.Trusts are also subject to IHT charges every ten years. This charge is 6% of the value of the trust assets. There are also exit IHT charges where assets are removed from a trust. Take a look here for more information.I can see no benefit in a company or a trust in your situation.I hope this helps but let me know if you have any further questions.
Thanks for help