Nick Wright highlights crucial tax reliefs that can make or break property portfolio incorporation.
Property portfolio incorporation triggers substantial tax charges, including capital gains tax (CGT) on the transfer and stamp duty land tax (SDLT) (or land and buildings transaction tax (LBTT) in Scotland, or land transaction tax (LTT) in Wales) on the acquisition.
Without appropriate reliefs, these costs can make incorporation prohibitively expensive, negating the financial benefits of corporate ownership.
Why does it matter?
The availability of CGT incorporation relief under TCGA 1992, s 162 and relief from SDLT, LBTT or LTT for portfolios operating as a partnership can transform the economics of incorporation.
These reliefs can defer or eliminate
