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SDLT TRANSFERS TO LIMITED COMPANIES

Q: WHAT IS THE STAMP DUTY LAND TAX IMPLICATION, WHEN TRANSFERRING PROPERTY TO THE LIMITED COMPANY?

Holding a buy to let property via a limited company can be a winning way of holding property.  Lower rates of corporation tax and full mortgage interest withdrawal apply following the changes to interest relief for individual landlords.

There have been alterations to stamp duty land tax and as such it has become an area that should be given more than a mere thought.  Here we are gazing at the SDLT implications of property transfers in England, Northern Ireland, and Wales.  Transmit of property in Scotland will be subject to land and buildings transaction tax, and from 1 April 2018, property transfers in Wales will be subject to the land transaction tax.

Where an individual is transmitting a property to a connected limited company the following should be considered:

The consideration is judged to have been payable at no less than the market value of the property. The SDLT cannot be less if the transfer is for nil consideration or at less than market value.  There are no rules or regulations relating to gifts etc.