Selling my house to my LTD

[Affirmation]

I have a property with a mortgage for 190 000 can i sell to my LTD company for 190 ,000 and then rent through the company ? Or sell on again through the LTD ? Would have no capital gains to pay on first sale ? Need advise . If rented could generate 14, 000 per annum .

 

[ClubMan]

Most likely a bad idea.
See here:

site:askaboutmoney.com property company - Google Search

 

[Affirmation]

Can you explain why please ?

 

[Cantillon]

A house with a mortgage can't be sold until the mortgage is repaid.

 

[Brendan Burgess]

Forget that you own this property.

Read those posts. It's crazy for a limited company to buy a property.
The company will pay tax on the rent. And then when you take the money out you will pay tax on the profits.
If the property increases in value, the company will pay CGT on the profit and when you take the money out of the company, you will pay CGT on the profit again.

And administratively it is very difficult. If you want to take action against tenants, you will be imposing another layer of bureaucracy with which to trip yourself up.

Brendan

 

[Brendan Burgess]

Your problem is that you have built up €190,000 cash in a limited company and you don't know how to get it out tax efficiently.
You think that by buying the house from you, you are fixing that problem. You are just making it worse.

Sit down with your accountant or tax advisor and ask them how to get the cash out of the company. It is most likely that you will just have to pay tax like everyone else. Well, you will be paying it twice as the company already paid Corporation Tax on the profits that you inefficiently left in the company.

Brendan