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Selling existing home to Own Ltd Company to generate cash for deposit
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"That's one brave mortgage advisor who's given you all this accounting advice!"
Probably not qualified to give half of that advice, certainly set to get two mortgages plus a big fee out of that.2 -
Besides all above, regarding CGT, you are correct that there is none at the point of sale. However from then on there is no Personal Residence Relief and Ltd Co do not receive any CGT allowances. So all future gain would become subject to Corporation Tax if and when sold.
It seems there is only one person getting advantage from this deal and that is the person selling two mortgages.
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They would be buying a new house for themselves. They're trying to get to get surplus cash out of the company, tax free. The mortgage advisor is trying to sell mortgages...GDB2222 said:You have not mentioned the tax implications of living in a home owned by the limited company, if any.But if they were still living in it, yes, it would definitely be taxable as a benefit in kind.Everything that is supposed to be in heaven is already here on earth.
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...and then what?AK_MSE said:
The plan is to buy a new house and move out of the existing one which will be owned by the companyGDB2222 said:You have not mentioned the tax implications of living in a home owned by the limited company, if any.
It'll sit there empty?
Or the company will start running a residential lettings business?2 -
not thinking too much into the future but if the company owns the house for a long time (20 years) is that a problem? May be one day have more properties and does becomes a lettings business?0
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@Doozergirl agree about he benefit in kind and hence the plan is to move out to another property.
Or else I (as an individual) start paying rentt to my compant?!!!0 -
If one property is let, that's a lettings business. Whether you do it as a sole-trader, or whether your limited does it.AK_MSE said:not thinking too much into the future but if the company owns the house for a long time (20 years) is that a problem? May be one day have more properties and does becomes a lettings business?
Anything under full market rent would be a taxable benefit in kind.AK_MSE said:Or else I (as an individual) start paying rentt to my compant?!!!0
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