1 March 2016
Incorporation of a property business
Property investors are being hit this year with a 3% SDLT charge and with effect from 2017 with a restriction in the tax relief on loan interest. Consequently many are considering incorporating their property portfolio which is easier said than done.
Is there Capital Gains Tax chargeable on the value of the properties transferred or might incorporation relief apply?
Is SDLT payable on the value of the properties?
Will the lender transfer the borrowings to the company or will a new lender advance to a new limited company?
There is no easy answer to these questions which have to be considered on an individual basis.
