I own a buy-to-let property (BTL) in Plymouth in my personal name and a few in my limited company. I do not currently own a residential property. I'd like to transfer my BTL property to my business, so I do not have to pay the 3% stamp duty land tax (SDLT) surcharge when buying my property. I had planned on simply selling it to the company, but I heard I can reduce costs if I transfer to a partnership first. Can you please point out the main tax considerations?
What you have written is technically correct, but quite likely not practical. If you transfer the property to your company, the company will have to pay SDLT on the market value of the property, plus the extra 3%. Additionally, you may have to pay capital gains tax on the transfer to the company. It is correct that there is a partnership relief from SDLT when a partnership transfers a property out of its ownership (e.g., to a company; see HMRC’s Stamp Duty Land Tax Manual at SDLTM34170). However, it must be a partnership in business (see SDLTM33110). Furthermore, it may cost capital gains tax and SDLT to get the property into the partnership.