There is a possible solution to transfer your property to a corporate structure that will not cause you to suspend sDLT commitments. use of a partnership structure as an intermediary. There is also a relief from LTDS which, under the right circumstances, can reduce the LTDS to zero, which must be paid when transferring ownership to a business. The discharge applies when ownership is transferred from a company to a company that is generally controlled by its partners: this is usually the case when a real estate investment transaction is created. 3 – In the last two or three years, you have submitted a partnership tax return to HMRC, but stamp duty is usually levied on the creation of a real estate company, based on the market value of the portfolio transferred to the new company. Now that this tax would include the 3% surcharge, there seems to be a significant barrier to the creation of a real estate company, but this is not the case for real estate companies that are considered partnerships. 3) Submit 3 years of self-assessment for the partnership. Please note that all asset losses at the time of creation (i.e. creation losses) are lost, as they cannot be deducted from the benefits of the partnership. If you have a real estate partnership, this could be a tax-efficient route and a reasonable restructuring path.
2) Prepare a partnership agreement (we recommend using a lawyer to develop this important document). This document should identify the amount of capital inflows as well as flexibility in the allocation of profits each year, based on the efforts made in the partnership (as you see fit). You and the lawyer must ensure that the agreement and partnership agreement are watertight to ensure that it does not fall within the HMRC definition of Sham Partnership (only to avoid taxes). There are a number of possible solutions. These include consolidation in a smaller, less oriented portfolio, or the reorientation of residential real estate to commercial real estate, where the restrictions do not apply. However, since the restrictions apply only to individuals and partnerships and not to businesses, one of the proposed solutions is to transfer the leasing activity to a business.