How can we transfer our buy-to-lets into a limited company?
Q. We would like to transfer our commercial properties from personal ownership to a limited company and are wondering if we would have to pay capital gains tax or stamp duty? Name and address supplied
Ordinarily, transferring a commercial property that is owned personally to a limited company may have capital gains tax (CGT) and stamp duty implications.
If you can demonstrate to HM Revenue & Customs that your property activities represent a business, rather than just an investment, then you may be able to benefit from incorporation relief. This broadly involves transferring the property business to a company in exchange for the issue of shares. If incorporation relief applies, any capital gain that arises may potentially be deferred in full.
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