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Posted Wed, 14 Jun 2023 19:00:56 GMT by
Dear HMRC I have now read on several websites the following suggesting transfer of buy to let property to an LLP: "What Happens To Capital Gains Tax, Stamp Duty, And Refinancing When The Properties Are Transferred To The LLP? This is yet another attractive feature of the LLP structure. There is no need to transfer the ownership because LLPs are tax transparent and members may hold properties “in trust” for the LLP. As a result, there is no conveyancing, no need to refinance, and no CGT or Stamp Duty to pay, as the assets’ ownership need never be changed." This appears to suggest that there is no CGT due if the beneficial interest in a property is held "in trust" for the LLP as there is "there is no conveyancing, no need to refinance, and no CGT or Stamp Duty to pay, as the assets’ ownership need never be changed." Please can you confirm whether this view is correct - wouldn't this amount to a deemed dispoal as the beneficial ownership wil undoubtably change from the previous own to the LLP? Thanks. Joe

[External website reference removed - Admin] 
Posted Mon, 19 Jun 2023 11:19:14 GMT by HMRC Admin 5
Hi,

Any reduction in the proportion of an asset that you are beneficially entitled to is a chargeable occasion for capital gains tax.  
A partner who transfers a chargeable asset to a partnership is treated as having disposed of the part of the asset that they no longer have an interest in.
An asset owned by one partner and used by the partnership may or may not be considered a partnership asset.
You can read more about establishing whether assets used by a partnership are partnership property in our Partnership Manual at PM163270
and about the capital gains tax effects of contributing assets to partnerships in our Capital Gains Manual at CG27900 onwards.

Thank you.

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