Taxation help please

Hi I wonder if anyone could kindly help.

I have recently inherited two properties, after the sad passing of my dad ( 3 years ago) and my mum ( 2 years ago). I have rented one of the properties out through Open Rent and will be looking to rent the other very soon. My concern is to understand how I am best to ‘structure” the ownership of these properties. I understand the difference in the taxation of the rental income but I want to understand if it beneficial in transferring the properties into a company structure to help with inheritance tax planning. I am keen to leave the properties to my children and wonder if by holding the properties in a company structure will help. I understand that if I transfer the properties into a company that I will need to pay stamp duty but I’m keen to understand if anyone has any info on what the benefits are for IHT planning. Alternatively any suggestions for a good accountant in the London/surrey area that specialises in property would be really appreciated. Sincere apologies for the length of this and thanks in advance

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consider are you children old enough now to take care of one of the properties?

Good question Steve18. I’d like to know the answer to this too!

If you know when you are going to die make sure you pass it on more than 7 years before !!

Similar discussion took place elsewhere that gives you a good idea as to the benefits or otherwise:


Hope that helps

Hi Steve

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Here is what I can tell you! My brother is an accountant and looked in to this on our behalf when he and I set out on a jointly owned property business in 2015. He looked into it and we then discussed the findings. And my answer here is a very paraphrased summary of our discussion…and decision.

There are benefits to being a company, but these have to be offset against the costs. As a company the requirement to file accounts etc will mean you will almost certainly need to hire an accountant and possibly a bookkeeper. As a company, raising loans is different too (And pricier) - its not the same as an individual getting a buy to let mortgage. The benefits are simple, you can choose to pay yourself a salary or a dividend and have that taxed accordingly as and when it suits you. And of course you have different options in terms of tax planning for retirement and inheritance. It may also be easier to sell as a “going concern” as an investment company.

We operate 40 - 50 tenancies across a mix of HMO’s and normal buy to lets and the benefits when we set out in 2015 were surprisingly marginal. We took the company route for a variety of reasons, being a partnership was one of those. I think since the change in mortgage relief came in that balance may have shifted a little in favour of a corporate structure - but then if you have inherited debt free that may be less of an issue.

Thank you for all your help and ideas so far. It’s really appreciated.

Despite what solicitors may tell you, there is no stamp duty to pay unless there is a ‘consideration’, ie money or money’s worth, paid for the property by the recipient.

There may be capital gains to pay if the properties have increased in value between you inheriting and transferring them. Unlike SDLT, CGT is determined by the market value not the money received.

Take professional advice.