Can I sell my company property to myself? It’s a question that pops up often when business owners are looking to shake things up with their property holdings. While it’s possible to flog your company’s bricks and mortar to yourself, you’ll need to tread carefully to avoid stepping on any legal or financial landmines.
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What’s the deal with selling company property to myself?
Selling company property to yourself is perfectly legal, but you’ve got to do it by the book. The key is to make sure you’re not short-changing the company or giving HMRC a reason to come knocking.
How do I go about it?
First things first, you’ll need to get a proper valuation. This isn’t the time to be cheeky and try to snag a bargain. The sale needs to be at market value, or you could find yourself in hot water.
Here’s a quick rundown of what you need to do:
- Get a professional valuation
- Chat with your accountant and lawyer
- Keep meticulous records of everything
What about the taxman?
Ah, taxes. Can’t live with ’em, can’t sell property without ’em. When you’re selling company property to yourself, you need to be clued up on the tax implications. Here’s a handy table to give you an idea:
| Tax Type | What to Watch Out For |
|---|---|
| Capital Gains Tax | Might apply if the property’s gone up in value |
| Stamp Duty Land Tax | You’ll need to pay this as the buyer |
| Corporation Tax | The company might need to cough up on any profit |
Is it worth the hassle?
Well, that depends. There are some perks to selling company property to yourself:
- You get more control over the asset
- There might be some tax advantages
- It can simplify your company structure
But it’s not all roses. You need to watch out for:
- Potentially breaching your director’s duties
- Getting tangled up in tax complications
- Attracting unwanted attention from HMRC
Can I sell my property below market value to my limited company?
Not a great idea. Selling below market value could land you in hot water. It might look like you’re trying to pull a fast one, and that’s not going to go down well with HMRC or your shareholders.
How do I transfer property from myself to my limited company?
If you’re looking to move property into your company, here’s what you need to do:
- Get a professional to value the property
- Have a natter with your solicitor and accountant
- Sort out any taxes (like Stamp Duty)
- Update the property’s title at the Land Registry
What are the tax implications of selling property to my own company?
Selling your property to your company isn’t a get-out-of-tax-free card. You’ll need to think about:
- Capital Gains Tax if the property’s gone up in value
- Stamp Duty Land Tax for the company
- Corporation Tax on any future rental income
Is it better to own property personally or through a limited company?
There’s no one-size-fits-all answer here. It depends on your situation. You’ll need to think about:
- Your tax position
- What you’re planning to do with the property long-term
- Whether you can get a mortgage
- How much paperwork you’re willing to deal with
Remember, when it comes to selling company property to yourself, it’s all about doing things by the book. Get professional advice, keep everything above board, and you’ll be alright. And if you’re ever in doubt, just remember: it’s better to ask for permission than forgiveness when it comes to HMRC!
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