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Sam, Accountant
Category: Tax
Satisfied Customers: 14165
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I have a small holiday letting business (currently not a

Customer Question

I have a small holiday letting business (currently not a limited company) which involves two large properties (with large mortgages). I want to involve my daughter to enable her to continue when I die without having to sell to pay death duties.
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.


Thanks for your question

You can do this but you would have capital gains to pay in making the transfer to the limited company as you would be changing legal ownership of the properties (and the same would apply if you formed a partnership or even simply transferred the properties into joint names with your daughter.

So you do need to weigh up how much these properties have increased in value since the original acquisition price.

Then this would allow you to only have 50% (assuming you would have 50/50 ownership within the business) of the value of these assets plus the business included in your estate.