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bigduckontax, Accountant
Category: Tax
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Me and my wife have transferred a property from our personal

Customer Question

Me and my wife have transferred a property from our personal name to company name
3-Oceans Ltd where we are directors, chairman and sectary of the company and my 3 daughters who are share holders and each hold 20% share in the company. This property was bought in 2007 for 750000/- and transferred in March 2016 at £0/- where no currency was involved. However the valuation declared to the inland revenue while transferring the property was valued at 910,000/-
Currently the company is involved in development of properties plus renting of properties.
The tittle no of the property is AGL 187218 and the property: Part of first floor, 4 lodge lane N12 8JR..........Could you please advise how much stamp duty we need to pay.
Submitted: 2 years ago.
Category: Tax
Expert:  Nicola-mod replied 2 years ago.
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Customer: replied 2 years ago.
I am happy to wait
Thanks for updating me
VJ shah
Expert:  Nicola-mod replied 2 years ago.
We will continue to look for a Professional to assist you.
Thank you for your patience,
Expert:  bigduckontax replied 2 years ago.
Hello, I am Keith, one of the experts on Just Answer and pleased to be able to help you with your question. Gov UK web site on Stamp Duty Land Tax (SDLT) has the following advice: '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.' Thus the SDLT payable would be calculated on 910K. The rate of tax would normally be 5%; the higher rate of 8% is escaped as that did not come into effect until All Fools Day, 2016. The probable SDLT to be charged to the company, the buyer pays SDLT, would thus be GBP 45,500; ouch! Don't forget that stamp duty, charged on innumerable transactions in Georgian times, was one of the triggers of the American War of Independence! It didn't work though as some individual states within the Union still charge stamp duties on land transactions although they call it by another name! I do hope that you have found my reply of interest.