Business property is typically taxed differently than personal property. For example, business property may be eligible for certain tax deductions or exemptions, while private property may not be. However, like personal property, the business property can be transferred to a new owner, typically through the sale of the business or other means such as a gift or inheritance. But this poses an important question. How do you transfer property to a limited company?
Transferring property to a limited company
Transferring property to a limited company can be complex, and it’s important to be aware of all the steps involved. Here is a guide to help you understand the process:
Determine the value of the property
Before transferring the property to a limited company, you must determine its value. This can be done through a professional valuation or by comparing the property to similar properties in the area.
Consider the tax implications.
Transferring property to a limited company can have significant tax implications for the company and the individual transferring the property. It’s important to consult with a tax professional to understand the potential tax consequences of the transfer.
Transfer the property
The property transfer is done through a deed of transfer. A deed of transfer is a legal document outlining the terms of the transfer, including the transfer of ownership from the individual to the limited company.
Register the transfer
Once the property has been transferred to the limited company, it must be registered with the appropriate government agency. Typically involving completing a form and paying a fee.
Update the property records
After the property has been transferred and registered, updating the property records to reflect the new owner is important, typically involving contacting the local land registry office to update the records.
Additional steps
Depending on the circumstances, other steps may need to be taken to complete the transfer of property to a limited company. For example, you may need to obtain consent from a mortgage lender if the property is subject to a mortgage.
It’s important to carefully consider all the steps involved in transferring property to a limited company and seek professional advice if necessary.
