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  • Tax

    Incorporation due to Section 24

    Hi, I think that this may have been touched on before ? To refresh, my understanding is, and to check the accountants advice given to me.

    To obtain, CGT relief, I will need to incorporate my entire rental portfolio in at the same?  currently personally owed.

    To obtain SDLT relief, I will need to form a legal Partnership with my wife?  even though we have been operating the business jointly for a period of years.

    For the above to work correctly, would my wife also need to incorporate her properties that are currently personally owed?

    Is there a set period of time that the partnership needs to be in a legal structure to obtain SDLT relief, I understand it to be 2 years?

    Thanks for any advice.

    On a final note, what a great site this is !!

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    Hi Timmy (my answers in bold),

    The bigger question is why are you being advised to incorporate in the first place; it's a one way street, horribly expensive, and causes more problems than it solves.

    To obtain, CGT relief, I will need to incorporate my entire rental portfolio in at the same?  currently personally owed. If you mean will you get S162 incorporation relief, then the answer is yes.  Don't forget that you'll also have to remortgage each one, and if you have too many then you'll need multiple lenders.

    To obtain SDLT relief, I will need to form a legal Partnership with my wife?  even though we have been operating the business jointly for a period of years. Advance clearance is no longer available, so that might be the case, but the devil is in the detail.

    For the above to work correctly, would my wife also need to incorporate her properties that are currently personally owed?  Only if she wants make the same mistake.

    Is there a set period of time that the partnership needs to be in a legal structure to obtain SDLT relief, I understand it to be 2 years?  HMRC define it as a 'reasonable' period.

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    Tony Gimple

    Founding Director

    Less Tax For Landlords

    0203 735 2940


    Thanks Tony for posting, may be you private message me so that I can put some numbers your way? Also to answer the first point you raise, Incorporation for gradually bringing my sons on board as shareholders, Parking properties into long tern finance arrangements, Interest rate relief. and future growth.


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    Thanks Timmy.

    I can best be reached in confidence by email at tony.gimple@lesstaxforlandlords.co.uk as we do not give individual advice via third-party sites.

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    Tony Gimple

    Founding Director

    Less Tax For Landlords

    0203 735 2940