Incorporating joint property into existing Ltd company?

Hi H

This wouldn't really be an incorporation as such. You would just be selling the house to your company.

In terms of proving the current value, if the property has no mortgage then I would recommend Hometrack. It will cost you £20. If it does need to be refinanced you can obviously use the mortgage valuation.

The value of the property at the date of purchase should be shown at HM Land Registry, so no problem there. Also, as you say, there will be no CGT to pay if the property hasn't increased in value. However, you will need to pay the 5% SDLT surcharge.

If you have any further questions please ask me here.

Reply to the comment left by Mark Alexander - Founder of Property118 at 09/12/2024 - 15:37
Thanks very much Mark for taking the time to advise. Very interesting and informative.

Reply to the comment left by Huw Hughes at 09/12/2024 - 18:11
I'm also in a similar position, and have begun conversations. Was hoping to find conveyancers who would dual represent, to save some costs (especially as I have all the paperwork available in hard and soft copy, as it was purchased in last few years, and even a failed sale in that time!)

Please let me know if you have found a suitable advisor/conveyancer.

PS - One thing I didn't know about, is that we'd need to both receive legal advice about the transactions, to ensure we're aware of what we're doing - this will be required for mortgage lender.

I have 2 properties that I would like to bring in to my LTD company. It's really a non starter as in effect you would have to sell the property to the LTD company, pay CGT on the increase in property price and 5% additional stamp duty on the purchase by the LTD company.

I have discussed this a number of times with my accountant and he has (as I though) it really is a non starter.

For long term estate planning it may be worth doing, but the transaction costs are high.

You may be better off just selling it and doing something else with the money. BTL is a pain in the neck nowadays anyway! Too much risk and admin and too little reward.

Reply to the comment left by Ryan Stevens at 10/12/2024 - 11:07
Ryan, couldn't agree more - when my tenants move out I will sell (6 properties remaining). Just had an emergency over the weekend - one property no electric in half the house, took 3 hours for emergency callout sparky to diagnose - not got the bill yet !

If you do not have a mortgage on the two properties, then leave well alone. It is always advisable to have properties in personal and corporate structures because you never know which class of ownership will be attacked by government.

I've spoken to the HMRC on this matter, their response was,

They are not property experts and would take your evidence of the price, such as comparisons from properties sold in the area or even the Zoopla, Rightmove estimate. As long as I have independent evidence which supports your price then they will accept that.

Reply to the comment left by Chris Whitehead at 11/12/2024 - 12:45
It is no good speaking to HMRC, most of the people you speak to will not have a clue, they are not tax experts.

You need to get it in writing, which HMRC is unlikely to be willing to do.

I have properties in both Ltd company and personal joint account. I just inherited a property from my dad and decided to keep it in our joint name, rather than the company, on the basis that I shall sell it soon. Selling from a company means no personal allowance, I know it is small but taking money out of the company can mean 40% tax, if I don't want to buy another property so I cannot see much of an advantage in placing the property in the company name. Unless someone believes it to be an advantage. I have to pay tax for an increase in value from the valuation at the time of dad's passing to the time if sale, so it will not be a lot. I wish to sell it within a year