Incorporating joint property into existing Ltd company?

Incorporating joint property into existing Ltd company?

15:08 PM, 9th December 2024, About a month ago 16

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Hello everyone, I am thinking of incorporating a house which is jointly owned by myself and my wife.

We have a limited company that already holds a few HMO properties. The house was bought around 10 years ago for £125k and it has not increased in value since then according to Zoopla. Going on average sold house prices on the street.

How do I prove the house value at the time of incorporation?

I am also looking for a solicitor who specialises in incorporation

Many thanks

H


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GlanACC

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11:39 AM, 12th December 2024, About 4 weeks ago

Reply to the comment left by Vibha Spal at 12/12/2024 - 10:18
If by a company you mean a LTD company, then take the money out as a dividend. The dividend tax rates are: 8.75% for basic rate taxpayers. 33.75% for higher rate taxpayers. 39.35% for additional rate taxpayers.

SCP

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14:58 PM, 14th December 2024, About 4 weeks ago

Reply to the comment left by Chris Whitehead at 11/12/2024 - 12:45
That is not quite correct (that HMRC are not property experts).
They have an Agency called The District Valuer and the Valuation Office, who are THE experts.

SCP

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15:03 PM, 14th December 2024, About 4 weeks ago

Reply to the comment left by GlanACC at 12/12/2024 - 11:39
Hi
Dividends are payable out of Profits, which are determined AFTER payment of Corporation Tax.

GlanACC

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18:40 PM, 14th December 2024, About 4 weeks ago

Reply to the comment left by SCP at 14/12/2024 - 15:03
I have no issues paying corporation tax, its personal taxation that gets my goat.

Crossed_Swords

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7:06 AM, 15th December 2024, About 4 weeks ago

For value now, ask an estate agent. For value at purchase if you can't find a comparable, use the HPI

GlanACC

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11:58 AM, 15th December 2024, About 4 weeks ago

Reply to the comment left by Crossed_Swords at 15/12/2024 - 07:06
you could always download the documents from Land Registry for a small fee. This will show the cost of the property.

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