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  • Tax

    Transfer property to SPV

    Hi all. First time posting here so sorry if this has come up previously with others. With all the current changes with taxing and the need for SPV companies to own houses going forward I'm in a position where I am about to buy my third property in my new SPV but own a buy to let personally in my own name and also another one in another limited company trading as an electrical contractor. Is there any advice you could give on the best ways to go about the transfer of the properties to my SPV company, as all ways I see I'm being hit hard with CGT and stamp duty which is a big expense to sell a house to myself. Also I'm struggling even finding a mortgage company that will allow me to buy between my companies which I find really hard to believe as they can't give me reasons. Another issue is the mortgage rates for a limited company mortgage seem extremely high compared to personal rates and I'm wondering if the tax relief for the SPV is worth the higher rates I will pay of the mortgage. Any advice would be greatly appreciated
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    Incorporation is not for everyone. And yes rates are higher so if that is your sole criteria why do it. One cannot give you definitive advice without more details on you and your goals. Anyone who does is peddling their own perception of solutions which may or may not suit you.

    You seem to have 3 BTL businesses and possibly just a single property manager. That will affect the tax position.

    You are going to be considered a portfolio landlord which will have implications on your lending options.

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    Chartered Accountant, Tax Advisor and Mortgage broker

    (and BTL portfolio owner)

    stuart@johnsonsca.com

    02039077022


    I’m really surprised you’re struggling to find a BTL mortgage in the name of a LTD company. There are dozens of products in the market so I’d suggest you try another broker.

    On the tax front it will be difficult to avoid CGT and SDLT so it’s probably best to keep your current property as is and buy future ones in SPV.

    Question why do you want separate LTD companies for each property? One LTD holding all would still achieve the tax savings and keep your compliance costs down.
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    Hi thanks for your replies much appreciated.
    I own an electrical firm which we bought a house in through bad advice a few years ago from our accountant. The house owned in my own name is one from before I was self employed 10 years ago. Ideally I'd like them and all future properties in the one SPV which I've recently opened but didn't appreciate the costs involved in the transfer to this company. Getting mortgages in the limited company wasn't an issue, the issue companies had was the fact that  I was selling from my trading electrical company to my SPV and that I own both. They gave me no reasons other than its just not allowed to be done. Had the same outcome from two brokers on this. The rates being offered to my electrical company are poor because of the nature of the company not being property based. Large upfront fees and monthly costs making renting almost non profitable. Suppose I was hoping for an easy fix way to transfer between my companies but it doesn't seem there is such a way.
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