Transfer UK property to offshore company - UK CGT & stamp duty?
Question: I want to transfer a UK property from my name to an off shore company that I own, will this be exempt from stamp duty and CGT. I propose transferring it for nil consideration Answer: The transfer of the property to the offshore company would be a disposal for CGT purposes. Therefore on the basis you are UK resident the transfer would be chargeable to UK CGT. The fact that you are transferring the property for nil consideration would not be an issue as you would be classed as connected to the company. As such the transfer would be deemed to be made at market value. Therefore the gain would be calculated as usual with the annual exemption offset (if not otherwise utilised) and the remaining gain charged at 18%. In terms of stamp duty, usually this is based on the actual disposal consideration. If the property was gifted there should be no consideration and therefore no Stamp Duty (Land Tax) charge. However if the transfer is to a company there is a special provision which provides for stamp duty land tax to be charged on the market value of the property where: a company purchases land from a person with whom it is connected
some or all of the consideration consists of the issue or transfer of shares in any company with which the vendor is connected Therefore if you received shares in the company the market value of the property transferred could be assessed to stamp duty land tax.
Ensure that you take detailed advice on the stamp duty issue, preferably from a solicitor experienced in property conveyancing.
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