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Post by usplitu on Apr 6, 2016 11:38:42 GMT 1
I'm wondering if anyone has any experience with this. I have a doo which owns a property which I'm hoping to sell to myself (director/owner) and subsequently shut down the doo. My question is this, can you sell yourself or transfer to yourself the property at book value or does it have to be at 'market' value. I know RETT is at market value, this question is for the company aspect of the sale. There is currently a loan in place to the company from me, can the property be used as a method of paying down the loan? Any relevant experience or input would be really appreciated.
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Post by Carol on Apr 6, 2016 12:36:59 GMT 1
I'll be interested in this answer too.
I suspect that the tax people wouldn't want to miss the opportunity to tax you, so they'll be looking for their own valuations for profit tax and rett, but I'll be interested t see if someone knows the answer.
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Post by Ribaric on Apr 6, 2016 17:42:18 GMT 1
You can transfer the property to yourself at any value you choose as far as tax is concerned. If you push it too far, they will make their own assessment, at your expense, and levy the tax based upon their assessment.
Why do think a company sale will not attract PDV at 25%? My accountant is sure it will although we haven't actually tried it. I'd be interested in the outcome.
I don't know about the company aspect of the sale, again I'd be interested in the outcome.
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Post by sandybear124 on Apr 7, 2016 10:25:04 GMT 1
We used the property to pay back the loan we made to the company. We then, as private owners, paid the 5% property purchase tax as normal.
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Post by sandybear124 on Apr 7, 2016 11:22:57 GMT 1
Further to last post - nothing unusual with regard to contract, just a company selling to a private buyer.
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Post by usplitu on Apr 8, 2016 12:03:29 GMT 1
Further to last post - nothing unusual with regard to contract, just a company selling to a private buyer. I understand that the sale is a standard sale, however the the question was regarding book value versus market value. Did you sell to yourself at the book value or did your accountant advise that it needed to be at market value? If your company had owned the property for years and you had been depreciating the asset, selling to yourself at market value rather than book value would leave a profit on your company books. Do you mind saying which method you used? |
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Post by usplitu on Apr 29, 2016 11:53:23 GMT 1
Why do think a company sale will not attract PDV at 25%? My accountant is sure it will although we haven't actually tried it. I'd be interested in the outcome. I don't know about the company aspect of the sale, again I'd be interested in the outcome. My accountant said that because the property has not been substantially renovated and was pre 1968, PDV is not chargeable. He said if more than 50% of the value of the property had been spent on renovations to the property, then the sale would be subject to PDV. |
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Post by Carol on Apr 29, 2016 14:27:29 GMT 1
very useful. Thank you, usplitu
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