I was considering selling my current home to my limited company as it maybe more tax efficient. E.G only paying 20% tax vs 40% income tax. I suspect it won’t be worth my time as I will have to pay stamp duty.
I read online “if you can prove that your property portfolio is your business, then you can incorporate your business, which includes transferring into the limited company your properties without paying SDLT. Obviously, you need to jump through hoops but it is possible.”
Then I asked CoPilot (AI)
You’re correct! If you can demonstrate that your property portfolio is indeed a business and not just a passive investment, you may be eligible for Incorporation Relief. This relief allows you to transfer your properties into a limited company in exchange for shares, deferring Capital Gains Tax (CGT) until you sell those shares.
However, it’s important to note that Stamp Duty Land Tax (SDLT) is generally still payable unless the transfer involves a partnership. The key is to show that your property activities are substantial and active enough to qualify as a business
Has anyone on here done this?