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bigduckontax, Accountant
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I have 5 flats on one freehold jointly owned with my wife,I

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I have 5 flats on one freehold jointly owned with my wife,I would like to put the freehold into a limited company and the flats on there own leases to get better mortgage rates is this possible without paying capital gains tax?
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 help you with your question. The situation reflects the oft quoted Red Queen's remark in Alice Through the Looking Glass of 'Jam yesterday, jam tomorrow, but never jam today!' By transferring property to your limited company Incorporation Relief applies, but this merely postpones any Capital Gains Tax (CGT) until you sell your shares in the company at some future, indeterminate date.
Customer: replied 1 year ago.
Thank you for your response, once the freehold is transfered to a limited company would putting the flats on there own leases incure taxes?
Expert:  bigduckontax replied 1 year ago.
There is a possible liability to Stamp Duty Land Tax. CGT also rears it's ugly head; with leases this is a highly complex area, but the ACCA have an excellent summary which you can read here: http://www.accaglobal.com/uk/en/technical-activities/technical-resources-search/2013/october/cgt-property-leases.html Please be so kind as to rate me before you leave the Just Answer site.
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Expert:  bigduckontax replied 1 year ago.
Thank you for your support.

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