Thanks for the excellent video. We have a property partnership of 3 people which has been operating 20 years. It has 2 properties worth £400k with no debt. We would like to incorperate that partnership and then one of the partners will buy shares of the other 2. I am one of those selling my shares. I expect I will have to pay my defered CGT at the time I sell the shares, but will I be liable for extra SDLT as well? Thanks
Hi Simon, thank you for the info. My question that is giving me a major headache (with my small portfolio of 4)is whether to go down the Partnership>incorporation route or keep current portfolio in own names and buy future aquistions through a Ltd?
That is a great question and one that you need to discuss with your tax advisor for sure. There are no quick fixes to this rather complex and sensitive subject. There are a lot of thinking elements to your decision making
what is the process to incorporate from the conveyance perspective. the property is remortgaged this time in the name of the new SPV and essentially is a purchase transaction but the actual sale is essentially a transfer of equity. i ask this because may solicitors insist is a 3 transactions: remortgage/sale/purchase . can you clarify ?
Hi VC, this is a complex area of tax law. It is specific to you and the case so I would not be able to provide a generic answer. You need to get your tax advisor and solicitor to work through the process steps.
Very informative as always. I am considering selling my commercial property (in my personal name). It’s currently trading as a restaurant. I’m just leasing it out to a business who trade in it, i.e. I do not directly trade from it, but it’s a trading business and will continue to be so. Can I claim rollover relief/defer gain if I reinvest the proceeds into buying another commercial property, which will be leased out in the same manor (i.e. I will not trade in it myself) ?
Great video I have a quick question i have a small commercial property which I'm setting up as a Ltd company can I add a buy to let residential property to that company or would it be better as a separate company or is there something else I can do .
@@UK-Property-Tax-Accountants in view of the current sdlt holiday, if I only have one property below 500k to incorporate, doesn't it mean I can skip the partnership step and avoid the sdlt/surcharge?
A good detailed video would be good in which you go into details about how to set up the share classes. Example: I plan to be the MD having all rights, but want to give growth shares to my kids, so when I pass away they will not have to pay a big amount of IHT. Thanks.
Thanks for the excellent video. We have a property partnership of 3 people which has been operating 20 years. It has 2 properties worth £400k with no debt. We would like to incorperate that partnership and then one of the partners will buy shares of the other 2.
I am one of those selling my shares. I expect I will have to pay my defered CGT at the time I sell the shares, but will I be liable for extra SDLT as well?
Thanks
There will be no SDLT but CGT will be as you quite rightly say
Hi Simon, thank you for the info. My question that is giving me a major headache (with my small portfolio of 4)is whether to go down the Partnership>incorporation route or keep current portfolio in own names and buy future aquistions through a Ltd?
That is a great question and one that you need to discuss with your tax advisor for sure. There are no quick fixes to this rather complex and sensitive subject. There are a lot of thinking elements to your decision making
what is the process to incorporate from the conveyance perspective. the property is remortgaged this time in the name of the new SPV and essentially is a purchase transaction but the actual sale is essentially a transfer of equity. i ask this because may solicitors insist is a 3 transactions: remortgage/sale/purchase . can you clarify ?
Hi VC, this is a complex area of tax law. It is specific to you and the case so I would not be able to provide a generic answer. You need to get your tax advisor and solicitor to work through the process steps.
Very informative as always. I am considering selling my commercial property (in my personal name). It’s currently trading as a restaurant. I’m just leasing it out to a business who trade in it, i.e. I do not directly trade from it, but it’s a trading business and will continue to be so. Can I claim rollover relief/defer gain if I reinvest the proceeds into buying another commercial property, which will be leased out in the same manor (i.e. I will not trade in it myself) ?
You will sadly not be able to claim holdover relief as you are not the trade conducting business in the property
Great video I have a quick question i have a small commercial property which I'm setting up as a Ltd company can I add a buy to let residential property to that company or would it be better as a separate company or is there something else I can do .
Yes you can is the quick answer to your quick question. Care needs to be applied on how much tax is to be paid
Do we have to be married to create a partnership?
Not at all.
Can we skip the process on forming partnership to incorporate and move properties from personal names into a limited company straight a way?
Sadly not if you wish to avoid CGT and SDLT
@@UK-Property-Tax-Accountants in view of the current sdlt holiday, if I only have one property below 500k to incorporate, doesn't it mean I can skip the partnership step and avoid the sdlt/surcharge?
A good detailed video would be good in which you go into details about how to set up the share classes. Example: I plan to be the MD having all rights, but want to give growth shares to my kids, so when I pass away they will not have to pay a big amount of IHT. Thanks.
This may be useful to you ua-cam.com/video/pyHCje88e3w/v-deo.html
Excellent video, thank you for answering my question
You are very welcome and I am pleased it helped.
good info...thanks simon
Thank you Bav, most kind