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Help selling a house to my own limited company

benl12
Posts: 4 Newbie
I have just bought a new house and am going to be selling my old house to my limited company. As its basically selling it to myself, I was wondering what I would expect to pay for a solicitor to do this or could I do it myself? Is it as easy as transferring money from my company to me and changing the names on the deeds?
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Comments
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You're not selling it to yourself at all.
A company has a completely different legal identity to the shareholders, employees or directors, even if just one person is all three.
You might not find out thee's a problem until years later when the company tries to sell the property and the purchaser's solicitor discovers a problem.
It is possible to do conveyancing yourself, but given the value and risk involved I'd rather pay a solicitor IMO.We need the earth for food, water, and shelter.
The earth needs us for nothing.
The earth does not belong to us.
We belong to the Earth0 -
I have just bought a new house and am going to be selling my old house to my limited company. As its basically selling it to myself, I was wondering what I would expect to pay for a solicitor to do this or could I do it myself? Is it as easy as transferring money from my company to me and changing the names on the deeds?
Is there a reason you are doing this? Generally, from a tax point of view, it can be pretty inefficient holding residential property in a ltd company (loss of CGT exemptions etc). Have you talked this through properly with your accountant?0 -
I suggest you take professional tax advice on this, huge clampdown on this, with additional stamp duty land tax charges being implemented in some cases, and an annual charge on top.0
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Is there a reason you are doing this? Generally, from a tax point of view, it can be pretty inefficient holding residential property in a ltd company (loss of CGT exemptions etc). Have you talked this through properly with your accountant?
I talked to my accountant. I am going to be renting my old house out. I am on the 40% tax bracket and if I put the rental income through my limited company I only have to pay the 20% corporation tax. I'll just let the rental income sit there.It is possible to do conveyancing yourself, but given the value and risk involved I'd rather pay a solicitor IMO.
I think you are right. I talked to a couple of solicitors today and basically I have to get my own representation and one for my limited company. One quote was £700 + VAT + land registration fees for representing both sides at different branches of the same solicitors. Waiting on another quote but I think I'll just go with that. I don't want anything biting me in backside years down the line.0 -
I talked to my accountant. I am going to be renting my old house out. I am on the 40% tax bracket and if I put the rental income through my limited company I only have to pay the 20% corporation tax.0
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are you sure you have a good reason to do this? it seems costly"enough is a feast"...old Buddist proverb0
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Yep, there are other ways to avoid paying 40% tax such as paying it into your pension etc.
Taking professional advice really is the way to go, especially for the cost potentials of getting it wrong.Thinking critically since 1996....0 -
are you sure you have a good reason to do this? it seems costly
Yes, I don't want to pay 40% tax on income. The company pays me up to the 40% rate in dividends and salary, nothing more. If I start getting rental income, I'll have to pay tax on that at 40%. There is no way I can reduce the amount I get paid from my company either so taking 4k less out of the company to offset the rental income is not an option.
Also, my company has the funds to buy the house outright (my old house is really cheap) so I don't have to mess around getting a BTL mortgage.there are other ways to avoid paying 40% tax such as paying it into your pension etc.
Everyone I've spoke to about financial planning says a pension is a good way to reduce my tax. I just say I don't believe the pension system will be around in its current form when I retire so there’s no point. No one has managed to convince me that private pensions will be worth anything in 35 years time when I get to retire.
I have taken professional advice and it was to sell to my limited company. I just wanted to know what’s the best way to do this as my accountant didn't know.0 -
Why can't you reduce the amout you get paid from the company? Just reduce the dividend payment.
You might want to close that company down sometime (I assume it's a trading vehicle for you) which could mean problems with the property.
I agree with you about the risk associated with pensions.0 -
What good is the money to you if its just stuck in your Ltd Co? Maybe I'm missing something but what is the difference (tax-wise) between
1.) Own BTL yourself, reduce amount the Ltd Co pays you to keep under 40% bracket (so money accumulates in Ltd Co).
2.) Company owns BTL, it pays you same amount, but money accumulates in it.
Apart from within 2.) you can take advantage of CGT exemptions etc.0
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