Help please

Rachel

Hello

I have a client who has decided that they are going overseas.

They currently have 2 properties and rent one out and the other they live in. They will rent both when they go. They would like the houses put in the companies name. This is completely out of my remit so I thought I would ask for advice on here but my head is saying No to putting the houses into the companies name. Can anyone point me in the right direction.

Also, they plan to continue the business overseas mainly remotely and I beleive all the clients are UK, so basically carrying on as normal but in a different hot country. What are the implications of this?

Many Thanks

Newbie

If I have understood the proposal is for the properties to be transferred into the name of a limited company, this would be less favourable in terms of capital gains reliefs if they decide to sell later on in the future.

T.C.

Is it a limited company?

Monsoon

Transfer to ltd co- would incur stamp duty, and indeed less favourable tax treatment on subsequent disposal: likely advice should be don't do it. They will get much better PPR reliefs on the one they lived in by keeping it owned personally. Good tax planning now considering their likely movements in the future may really help at this point (eg if they move back at a certain point this can help increase PPR etc).

Nothing stopping them running a UK Ltd from offshore. Depending on where they are ging might be tax efficient to have offshore company running a UK business though!!

Rachel

Thank you

Yes it is a LTD company

I think it is Spain but not 100% and I think it is only for the summer months.

groundy

You would also possibly give rise to a Capital Gain as the property would need to be transferred to the company at correct market value therefore giving the individuals a possible gain.

Rachel

Thank you for all the replies. All sorted now the properties are to stay as they because they are mortgaged in the individuals name. Phew sounded like it could of been complicated.