Creating a Company and transferring my BTL into it.

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M
MattManchester
10 Posts
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Hello.

I am looking at the options to prepare for the future and limit damage by George Osbornes 'stealth tax' style grab on small to medium landlords!

As I understand it, by creating an LTD company I can hold properties in it, and will have to pay corporation tax (only above 10k, if I don't take anything out) and none of these silly other punitive taxes. I understand the ere is CGT to pay ob transferring the property and Stamp Duty when transferring, BUT for me, this might be the best as:

- I am brand new landlord, my 1 property completed just at the start of the month and so transferring into a company will (unless I have been very fortunate and prices have already increased a huge amount) NOT result in any CGT due. I may have to pay stamp duty.
- The property is only worth 150k, so it will not be subject to ATED

This would mean I am well-placed from the start before it gets too expensive to make the change due to property increased etc.

MY QUESTION is, has anyone else does this, and can advise? Has anyone had experience of moving their mortgaged property into a company, are mortgage providers open to this (switching the mortgage to business buy to let) or do you HAVE to find a new mortgage product.

Are there any companies that can advise with the setting up and switching?

I appreciate any advice from this in the know. Also interested to know if it is more complicated running a buy to let through a company? Or the same process but all payments go to/from company?

Thanks in advance!
18/11/2015 11:47

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