Asset Transfer to Ltd Company

[roger rabbit]

I think I can offer some useful advice here MF:

Stop listening to Marillion. They are garbage. I won't charge you for this.

[Ardesco]

Afraid i'm not sure with an asset that is so valuble. I know that when you open a LTD company you can sell the company things like your existing computer at its current market value and I would assume you can do the same with assets like property, however it would probably be more advantageous to rent it to your company. That way you can take money out of your company without paying the normal NI/Tax on it, but you will have a tax liability because it will be classified as an income (i son't know what sort of a tax liability you will have).

I'm fairly in the dark on the legalities of this and really you need to go through it all with your accountant, however the fact that you are not paying off a mortgage with your rental is good because the IR can't try and make out that your LTD co own a percentage of the property if everything goes tits up (at least i'm fairly sure that is how it will work)

[MarillionFan]

Hi

Cheers. If you have any info would be great. Thx

[triboix]

More of a question for Artesco/Oraclesmith who seemed to be a bit more in the know, but anyone who knows welcome.

If I personally own an asset (ie. Commercial Property) and want to transfer it to a LTD Company, so that the LTD company owns the property but as a director I am owed a directors loan of the value of the property. How do I do it?

Do I have to

a) open the Ltd Company first, transfer the money in and buy the property in the Ltd company name (I dont have enough time to set this up) or
b)buy it personally then transfer the deeds and have the company owe me the money or
c) sell it to the Ltd company later on and then have to pay stamp duty again?

My new accountant is on holiday and wont be back for another 10 days.

If you genuinely owns a property, I think you can introduce it as a capital item in the company. The comany owns you nothing in this case, but your shares value will jump instantly! I guess you need to be the only shareholder, though. I have more info in some of my books at home, if you can wait for tomorrow (busy tonight!)
I am quite sure you can do that very easily for a new company. Instead of creating it with a capital of 100 pounds (typical IT consultancy!), you create it with a capital valued 150.000 pounds, for example.

However, you can't do that if you have a loan secured on the property (eg: mortgage). This is quite understable from the lender's point of view!

Disclaimer, IANAL, IANAA, seek legal advice, etc.

[tim123]

MF

AIUI this problem is going to be much more difficult because it is property (as in, bricks and mortar).

Whatever rules apply for a car, computer etc are not going to be enough for a building.

tim

[MarillionFan]

More of a question for Artesco/Oraclesmith who seemed to be a bit more in the know, but anyone who knows welcome.

If I personally own an asset (ie. Commercial Property) and want to transfer it to a LTD Company, so that the LTD company owns the property but as a director I am owed a directors loan of the value of the property. How do I do it?

Do I have to

a) open the Ltd Company first, transfer the money in and buy the property in the Ltd company name (I dont have enough time to set this up) or
b)buy it personally then transfer the deeds and have the company owe me the money or
c) sell it to the Ltd company later on and then have to pay stamp duty again?

My new accountant is on holiday and wont be back for another 10 days.