How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask bigduckontax Your Own Question

bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3113
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

If you own a residential property in your own name can you

Customer Question

If you own a residential property in your own name can you use a deed and run it through a limited company you have. So your limited company will manage and let your property. Will Capital Gains Tax be due ?
I think you can do this if you are buying a new property but can you use Deed if you already own it? What is the full name for the Deed ?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to assist you with your question. Any disposal of landed property attracts Capital Gains Tax (CGT). Most people do not realise this as if it is their sole or main domestic residence they are selling there is an entitlement to Private Residence Relief (PRR) which is given automatically and is at 100% of any gain made. The CGT position thus depends upon the 'sole or main domestic residence' position. If it is not your 'sole etc' then the gain will fall to CGT. CGT is levied on the difference between the acquisition and disposal price. Disposal price is the value as at transfer less transfer costs. The acquisition price is the purchase price plus purchase costs plus any improvements eg installation of double glazing, central heating, extensions etc. The gain is taxed at 18% or 28% or a combination of the two rates depending on your income including the gain in the tax year of sale. You do have an Annual Exempt Amount of 11.1K o offset this gain. The cheapest way of making such a change is to use a Land Registry Transfer if the property is on the Land Registry. You must be 100% sure of the title before using this method, but it avoids any other conveyancing fees that such a change would normally incur. I do hope my reply has been of some assistance.
Expert:  bigduckontax replied 1 year ago.
I find you rating simply astonishing.
I have told you the CGT position, you have not made any follow up requests, just given me a low rating.
If there is something you do not understand or need more guidance you should follow up, not give me a low rating.
Customer: replied 1 year ago.

HiCustomer

Thank you for your reply and does the Deed have a special name ?

You say CGT is payable but if the residential property is rented out in some cases these can be incorporated with no CGT I understand.

A recent case Ramsay V HMRC 2012 no CGT was payable as it was deemed to be run like a business and Ramsey spent at least 20 hours per week and provided some services such as garden cutting etc.

I would appreciate your thoughts on how active the landlord needs to be?

Full management by the landlord including all maintenance work checking rental payments, protection of deposit, all correspondence with the tenant.

Appreciate your thoughts on what the HMRC will want to see to allow you to incorporate with no CGT payable?

Expert:  bigduckontax replied 1 year ago.
It isn't a deed, it is simply a form which you can get from the Land Registry. Of course, if the property is not registered land than this procedure cannot be undertaken. Also you yourself must be absolutely sure of your title before using a Land Registry transfer.
Ramsey merely allowed roll over relief in respect of the transferred property. This merely postpones CGT until a final sale at an indeterminate future date. However roll over relief is normally only available for a furnished holiday lettings business although the HMRC advice in this area is a trifle woolly. The management activities would appear to be on all fours with Ramsay.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3113
Experience: FCCA FCMA CGMA ACIS
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 1 year ago.
Thank you for your support.

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions