I'm considering transferring my existing 3 personal buy-to-let properties into a new limited company. What are the specific costs and tax implications (stamp duty, capital gains, legal fees) I should anticipate, and at what point does the long-term tax saving from operating as a company outweigh these upfront charges?
Quick Answer
Transferring personal BTLs to a limited company triggers SDLT (including a 5% surcharge) and CGT on property gains, alongside legal fees. The long-term tax advantage of Corporation Tax (19-25%) over personal income tax must outweigh these substantial upfront costs, which requires careful financial modelling.
About This Topic
Learn the costs of transferring BTL properties to a limited company. Expect 5% SDLT surcharge, 18-24% CGT, and legal fees. Discover when Corporation Tax savings outweigh upfront charges.
This question is part of our Tax & Accounting category, providing expert guidance on UK property investment.
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