Question:
For tax purposes, is it better to transfer properties (situated in England) into a limited company; and if so, what tax savings can I make? What are the tax consequences if the company then goes into liquidation?
Arthur Weller replies:
There are three main problems transferring properties into a limited company: (a) capital gains tax on the individual; (b) stamp duty land tax for the company; and (c) transferring the mortgages on the properties into the company. However, the rule restricting relief for interest against rental income, for residential landlords, does not apply to companies.
