I own a buy-to-let (BTL) property in Burnley, which I have been trying to sell via an estate agent without any success. Can I sell it to my limited company, and if so, what is the tax position of my limited company and me on the sale and acquisition?
Arthur Weller replies:
You can certainly sell your BTL property to your limited company. As far as capital gains tax is concerned, you will be deemed to sell at present market value, irrespective of the consideration that changes hands. For stamp duty land tax (SDLT) purposes, the company will have to pay SDLT based on at least the market value of the property, plus the extra 3% (which companies always pay - even for a first property). It is necessary to not overcharge the company for the purchase of the property because if you do so, it will trigger an income tax charge on you for the excess. See HMRC’s Employment Income manual at EIM21661.