Obtaining property - what's the best options for me?

Bananas_1

Hi all

I’m after some advice regarding a property and what would make the best financial sense for my situation please. I’m obtaining a property in the UK from my brother (he lives in Hong Kong) that he is gifting it to me. The property is owned outright so does not have a mortgage. It is currently being let out and I hope to keep it this way. I work full time and earn £33,500 so pay the basic tax rate. My question is would it make best financial sense to transfer the property in my name or open a limited company and make the company the owner of the property? Would I have to pay stamp duty? Capital gains tax? Or any other fees? I know I will have to pay some sort of tax on the rental income but really unclear as way too much information online and it's not very clear. Can some of you offer some answers to my questions or suggest some good websites I should be looking at that will help me.

I have posted this question on the saving tax forum but haven't had any responses, so apologies if you're seeing this twice.

Thank you very much!

G_M

Are you ready to be a landlord? Do you know what is involved? read:

* New landlords: advice, information & links

* Letting agents: how should a landlord select or sack?

Capital Gains Tax will be due when you sell, as it is not your main residence.

Income Tax will be due annually on your income from the property - you must declare it on your income tax return. This may push you into the higher rate tax threshold.

SDLT will only be due if there is 'consideration' ie if you pay your brother for the property (either in cash or some other way), or take over a mortgage (which does not apply here).

It is usually not worth setting up a ltd company for a single property. You simply introduce other taxes not to mention beaurocracy.