Our latest article is part of our dedicated series of guides for landlords. Find out more about transferring buy-to-let properties to a business and how we can help.
Transferring Property
Transferring property to a Special Purpose Vehicle (SPV) Company is not a legal option; the properties must be sold to the SPV at the market value. This could incur some or all of the following costs:
- Stamp Duty Land Tax at the higher rate will be payable on the purchase by the limited company, even if it is the first property purchased by the SPV.
- Capital Gains Tax when you sell the property.
- Early Repayment Charges (ERCs) if you are still tied into your existing buy to let mortgage.
- Finance costs incurred by the limited company when take out a new buy to let mortgage.
Usually, the sale of a property to an SPV will not qualify for tax breaks such as Incorporation Relief and Business Asset Disposal Relief because HMRC regards property as an investment rather than a trade or business.
It’s highly recommended you seek the advice of a qualified accountant as everybody’s circumstances are different.
Specialist landlord accountancy with Fusion Business Services
Investing in buy-to-let property is rapidly growing in popularity, and it can be an excellent way to boost your earnings. If you are interested in developing a property portfolio, look no further than Fusion Business Services. We are an expert landlord accountancy provider who works alongside leading cloud-based software providers (FreeAgent) to ensure you manage your business in the most productive way possible. Our SPV service includes the following:
- Free SPV limited company set up.
- Access to FreeAgent gives you 24/7 access and real-time information, including a tax timeline, expenses tracker and invoice tracker.
- Full set of accounts prepared and submitted to HMRC.
- All registration with HMRC is completed on your behalf.
- Tailored tax planning and advice from your dedicated Account Manager.
- Minimal ongoing administration.
- Unlimited support via phone and email.
- Company registration for PAYE is available upon request for an additional charge.
Schedule a free and impartial consultation today
To schedule a free consultation or to discuss how Fusion Business Services can help you set up and assist you with your SPV company, please call 0800 2294020. Alternatively, please request a free consultation with one of our professionals today.
