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Post Info TOPIC: Transfer of Property from director to company
Malcolmdgama04


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Transfer of Property from director to company
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Hi,

One of the directors owned a property (residential property). After 5 years he moved out and the company then becomes beneficial owner. The property was bought in 2010 for 155K and in 2017 when the BTL was done the property was valued at 275,000 by the mortgage company. The director is acting on behalf of the company and at this point the benefical owner is now the company. We would like to have rent, interest charge etc go through the company. The legal owner is still the director, but any future capital gains above 275K would go through the company.

 

Can this be done ? And does the director need to declare anything to HMRC.

If so what would be the double entry :

At the point of transfer the mortgage is a 75% LTV

Asset 275K

Mortgage 206,250 ( Liabiility)

Director Loan 68,750 ( liability)

 

Thanks in advance for your help and assistance. 



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Cheshire


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Best thing is to have a chat with your accountant

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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
RobertPeterson


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I agree! Talk to your accountant for best answer.

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