Property Portfolio into a Limited Company

Car_park

Hey,
I am very new to this but I am learning. (be kind)
I have started looking after/getting them all in order paperwork wise after my fathers three houses and one flat. (Rented properties) 
I briefly saw a video (on Facebook) about putting the property portfolio into a Limited company if it was worth under 2 million and someone works for them 20 hours a week. 
Does anyone know what this is about or any advise would be amazing. 
Thank you  

DE_612183

not sure but wouldn't the Ltd Company have to buy the properties which would then attract stamp duty?

SDLT_Geek

Car_park said:

Hey,
I am very new to this but I am learning. (be kind)
I have started looking after/getting them all in order paperwork wise after my fathers three houses and one flat. (Rented properties) 
I briefly saw a video (on Facebook) about putting the property portfolio into a Limited company if it was worth under 2 million and someone works for them 20 hours a week. 
Does anyone know what this is about or any advise would be amazing. 
Thank you  

The reference to 20 hours work a week comes from the Elisabeth Ramsay case.  It was about whether there was sufficient activity for there to be a "business" so that potentially incorporation tax relief could be claimed for capital gains tax purposes on a transfer of all of the assets to a company in return for shares.

If your father owned the properties on his own, there would be no relief for stamp duty land tax, where the company would be liable for SDLT on the market value of the properties.

kingstreet

Please get professional tax advice before embarking on such a plan.