Selling own home to ltd co

[TheFaQQer]

TheFaQQer - HMRC might come calling, but I work with the assumption that. I have my accounts and all affairs clean, hence, not worried on that either. Unless if this house purchase would be seen as foul play by HMRC.

I'm sure Jon Bessell thought much the same, but if you're certain then it's not at risk then good luck.

[fidot]

Any profit made when your company re-sells the property will be liable for corporation tax.

[deeh]

Any profit made when your company re-sells the property will be liable for corporation tax.

Dredging the thread I know, but

What if he went to Foxtons and obtained a hugely optimistic valuation, then based the purchase price on that. Independent valuation = fair price?
At the point his company sold the property they might find that the taxable profits aren't as large as they might have been with a more realistic original valuation.

[northernladuk]

Dredging the thread I know, but

What if he went to Foxtons and obtained a hugely optimistic valuation, then based the purchase price on that. Independent valuation = fair price?
At the point his company sold the property they might find that the taxable profits aren't as large as they might have been with a more realistic original valuation.

He would then be commiting fraud or tax evasion or both.

[deeh]

He would then be commiting fraud or tax evasion or both.

Why?
That's specifically why I mentioned Foxtons. An established, professional (ok, Foxtons) company whose job it is to provide realistic estimates on the value of a property.
He doesn't go out of his way to point out the cracks in the wall, or that leaky tap (like he wouldn't if selling normally). Then uses the independent estimate as his sales value.

And, if anyone ever looked into the sale price, surely having above estimate would be better than than 'That's what Zoopla said it was at the time' based on the algorithm of the day.

Then when his company comes to sell the house they're at the mercy of the rest of the market. Might get lucky - great, you've got to pay tax on more profit. He might be unlucky.

[northernladuk]

Why?
That's specifically why I mentioned Foxtons. An established, professional (ok, Foxtons) company whose job it is to provide realistic estimates on the value of a property.
He doesn't go out of his way to point out the cracks in the wall, or that leaky tap (like he wouldn't if selling normally). Then uses the independent estimate as his sales value.

Then when his company comes to sell the house they're at the mercy of the rest of the market. Might get lucky - great, you've got to pay tax on more profit. He might be unlucky.

Because you are well aware the figures are not accurate and are manipulating them to gain a tax advantage.

Your last line kinda destroys your own point so back to letting the thread die nice and quietly.

[john@UKCA]

ChimpMaster - CGT will be 0 when I sell the house to the ltd, because I live in it ever since I bought it.

Do you have any reference where this is stated? It would be very useful.

The connected party rules for stamp duty applies where you are transferring property to limited company at under value.

The 3% stamp duty hike only applies if you personally own more than one property at the end of the transaction day when you purchase a property.

There are exceptions to this rule for replacing your main residence.

[Smartie]

True story

A relative of mine bought their house from her maj.

The bloke selling it forgot to mention that it belonged to his company, which had gone bust.
The usual searches turned this up and the property was then purchased from the crown.

True story.

[garnet]

He would then be commiting fraud or tax evasion or both.

BS, BS, sorry I am allergic to BS!

Do you always try to pay the biggest possible amount of tax? Seems so to me.
We are not stupid are we?

[Alan @ BroomeAffinity]

BS, BS, sorry I am allergic to BS!

Do you always try to pay the biggest possible amount of tax? Seems so to me.
We are not stupid are we?

There's a huge difference between not paying the highest possible amount of tax and being deliberately dishonest in avoiding tax. Lying by omission is still lying. Which means it's fraud. But if that's what you want to do, knock yourself out. What could possibly go wrong?