Transfer of Property from Sole to Limited Company

Hi I have a few questions about transfering property from sole ownership to my Ltd company. I bought it 4yrs ago so it is work about 40k more now at point of transfer. 1. Any CGT personally will be on the delta between original purchase price and the sale price to the ltd company? 2. The CGT won't be payable until latest 31st Jan 2024 (tax return will not be done until after 1st April 2023)? 3. The delta between purchase price and sale price is essentially me "gifting" the value to the business right, aside personally won't see that equity paid to me. so if that is the case, I can technically take that value out of the business tax free at any point? 4. Based on the above question 3, what will I be taxed on when the ltd company sells the property in terms of CGT and income tax if I take the profit of the property out of the ltd company? 5. If when the ltd company takes out the mortgage today to buy out my personal mortgage but also takes an addition £10k on top, can this be an amount I then take personally without tax implications (I guess this also relates to question 4 above)? 6. I have read about a "Section 162" incorporation relief, hiw would this be applicable to my situation? Thanks

Hi,
 

CGT would be due on any uplift from purchase price of property to market value at date of transfer and if this is for a residential property this would need to be declared and paid within 60 days of concluded contracts. I have attached guidance of the various reliefs that may be due. The following guidance is regards transfer of a property that was used as a business asset for a sole trader into a company as you have not stated if this is your personal house that is not used for business, or a property that you let out as a sole trader. Thank you.

Hi Thanks for your reply. I was a sole trader letting the property out. Was never a property I lived in. You state some guidance is attached but I don't see this...can you please advise. Can you also advise on tax implications when the ltd company sells the property and the profit is then handed back bearing in mind I personally gave the properties current equity to the ltd company. Thanks

Hi,

You can find guidance here:

Report and pay your Capital Gains Tax

You can find further guidance if the company sells the property here:

Corporation Tax when you sell business assets

Thank you.

Hi, We have four buy-to-let properties in my and my wife's name. Can I transfer one buy-to-let property only to a company and apply "section 162" to roll over CGT? Thank you, Viha.

Hi viha
This is a tax planning question, so we cannot comment.  
PIM1020 provides guidance on what is a UK property business:
Introduction: what is a UK property business?
CG65700 provides guidance on the transfer of a business to a company and interaction with other reliefs :
Introduction
Help-sheet 290 provides roll-over relief qualifying criteria :
Business Asset Roll-over Relief (Self Assessment helpsheet HS290)
In conjunction with CG60270:
Reliefs: Replacement of Business Assets (Roll-over Relief)
With CG60260 indicating persons entitled to relief:
Reliefs: Replacement of Business Assets (Roll-over Relief): Persons Entitled to Relief
Thankyou.
Regards.