Putting site into company - tax issue?

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LLB123

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Tax experts: I have a site that I'm about to build a house on in partnership with another party who will finance. I personally own the site and we're planning to set up a company for the purpose/duration of the build.
Given that I personally own the site wondering if it might trigger a personal capital gain on market value of the site by putting into the company and making it a company asset. No money will exchange hands so would it be viewed as simply director's capital of sorts? Cheers.
 
I am not a tax expert and for a complex property development project involving a company, you need to pay for tax advice.

Yes, if the company buys the site from you, you will be disposing of it, so it would be subject to CGT.

What is the advantage of building a single house via a limited company?
 
Brendan Burgess said:
I am not a tax expert and for a complex property development project involving a company, you need to pay for tax advice.

Yes, if the company buys the site from you, you will be disposing of it, so it would be subject to CGT.

What is the advantage of building a single house via a limited company?
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Thanks Brendan. It's because the other party is financing the build cost and the site itself will be my contribution. I'd hoped since no money would be changing hands it would not trigger a CGT situation until I look to take profit out of the company down the line.
 
LLB123 said:
Thanks Brendan. It's because the other party is financing the build cost and the site itself will be my contribution. I'd hoped since no money would be changing hands it would not trigger a CGT situation until I look to take profit out of the company down the line.
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And how do you intend to do that tax efficiently?

Without knowing the details, this seems like a fairly straightforward partnership i.e. not a company
LLB agrees to contribute a site which has a deemed value of €200k
Johnny agrees to pay for the construction which costs €400k.
The house will be sold and the proceeds distributed LLB €200k + 50% profit.

That will be complicated enough to figure out from a tax point of view, without inserting a limited company into the middle of it all.
 
T McGibney said:
You need legal advice too. Frankly the idea of conveying the site to a new company in advance of the build, thus incurring a stamp duty cost in addition to CGT, sounds crazy.
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I hear you. Another element I hadn't considered, thank you. Back to the drawing board so! :)
 
Agree with the above. A company doesn't sound like a good idea in this case
 
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