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 Sam Your Own Question

Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 7069
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
16196420
Type Your Tax Question Here...
Sam is online now

Could you tell me if its better financially to sell a property personally owned or se

Customer Question

Hi , could you tell me if its better financially to sell a property personally owned or sell it from a Ltd Company . I am a landlord with a small portfolio moving from sole trader to Ltd Company structure. My accountant has advised setting up a special purpose vehicle, whereby I lease my properties to the ltd company and make use of the lower rate of income tax and still get the mortgage relief. part of the portfolio is 4 flats with no mortgage . I will want to sell 1 flat next tax year , and was wondering if its worth transferring the flat I intend to sell into the ltd company now, or just selling as personal property.In relation to this can you confirm that any mortgage free property transferred into a ltd Company will attract no SDLT, and also that any CGT payable can be deferred until its sold at a later date.
Thanks
Submitted: 9 months ago.
Category: Tax
Expert:  Sam replied 9 months ago.
Hi Mark Thanks for your question Its always better to sell if as personally owned as you then qualify for annual exemption allowanceI disagree entirely with your accountant that this is a wise move, as you will incur capital gains by transferring the properties (which cannot be deferred) AND the transfer will incur a stamp duty charge whether there is a mortgage or not as you are transferring (selling in essence) to a different legal structure.And your accountant seems to be just suggesting that you lease the properties to the limited company - but what is the limited company for - do you trade or have a business as a limited company cannot just own normal rental properties as its not trade income its rental income. Then even if this was a wise move (and a legitimate move) you would have all the additional accountancy costs (which I suspect your accountant failed to mention) as you will have a Companies House and a Corporation Tax return plus certified accounts, plus payroll to run (with expenses and benefits tax return) then the strick guidelines and timelines for these are considered dividend payments and then still a self assessment tax return ! This only serves to line the accountants pocket I am afraid, and this special vehicle, if it has any off shore implications or its an umbrella services company - then walk away - this does not sound like your best interests are being represented here based on what you advise ThanksSam

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:

    6894
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Last | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    6894
    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:

    1772
    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:

    464
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2596
    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:

    268
    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