Help please

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Rachel
Rachel Registered Posts: 348 Dedicated contributor 🦉
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

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  • Newbie
    Newbie Registered Posts: 229 Dedicated contributor 🦉
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    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.
    T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
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    Is it a limited company?
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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    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
    Rachel Registered Posts: 348 Dedicated contributor 🦉
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    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
    groundy Registered Posts: 495 Dedicated contributor 🦉
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    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
    Rachel Registered Posts: 348 Dedicated contributor 🦉
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    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.
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