Ltd company to avoid SDLT?

adonis10

Keep_pedalling wrote: »

I would have thought that there would be a danger of getting cought out with a big IHT bill if this goes wrong. If you gifted this property to your parents today, and they got run over by a bus next week you might get your property back minus 40%.

This gift would also form part of your estate for the next 7 years, and part of their estate for another 7 years when they give it back to you. What the implications of them giving it back to you before those first seven years are up goodness knows because that asset would technically fall in both estates.

Why not just sell up and invest in something else instead? That would save all the hassle of being a LL as well.

Because unless they slash the iht limit by 100k or so, unfortunately this won't be an issue. Very much doubt they'll do this.

It looks like I'll have to, just don't know enough about the stock market to be able to achieve a £900/month gross yield.

Keep_pedalling

But if you give it away the rental income is no longer yours, and if I were your parents I would not touch this with a long barge pole.

Pay for some professional advice on this and if you still think this is a good idea, get your parents do the same before they agree to anything.

adonis10

Keep_pedalling wrote: »

But if you give it away the rental income is no longer yours, and if I were your parents I would not touch this with a long barge pole.

Pay for some professional advice on this and if you still think this is a good idea, get your parents do the same before they agree to anything.

technically, but it would be in my parents' eyes so no issue there.

Yes, we both will get advice. I'm just testing the waters. Doubt it'll happen and I may end up buying and taking the hit, if financially viable longer term. Problem is not knowing what George has in store next for smaller landlords.

adonis10

Dead_keen wrote: »

That's not what the consultation says.

Ah, perhaps I misread that bit. Thought there was a suggestion that individuals/companies with 15 or more are exempt.

adonis10

booksurr wrote: »

so over 6 weeks later you are still posting scenarios instead of doing what you said you would do ages ago - get professional advice and let them construct "scenarios" based on their full understanding of your and your parent's circumstances

Yeah, I will. One of my main weaknesses is indecision when it co,ex to important issues, and this is a clear illustration of that.

sheramber

adonis10 wrote: »

technically, but it would be in my parents' eyes so no issue there.

.

But not in the eyes of the tax man so your parents would have to pay any tax due as their income.

adonis10

sheramber wrote: »

But not in the eyes of the tax man so your parents would have to pay any tax due as their income.

Tax which I would obviously reimburse them so no issue whatsoever as it would all be in the basic rate band anyway.

Keep_pedalling

adonis10 wrote: »

Tax which I would obviously reimburse them so no issue whatsoever as it would all be in the basic rate band anyway.

Are you also a basic rate payer?

jjgold

pay the tax you owe and stop trying to avoid it you scrounger

adonis10

Keep_pedalling wrote: »

Are you also a basic rate payer?

Yes, which is why I said it is all in basic rate band.