UK Capital gain tax

[Rafal.p]

Hello,
I have question related to capital gain tax.
Do I pay capital gain tax if I sell my btl property to my own limited company?

thank you in advance

 

[espresso_941]

Is it a single-member (one-owner) limited liability company (SMLLC)? A domestic SMLLC, by default, is a disregarded entity for federal income tax purposes.

 

[Lisha Shrestha]

Hello,
I have question related to capital gain tax.
Do I pay capital gain tax if I sell my btl property to my own limited company?

thank you in advance

Yes, when you sell your Buy-to-Let property to your limited company, you are liable to pay Capital Gains Tax. This tax must be reported and paid within 60 days of the sale, at rates of either 20% or 28%, depending on your income.

Additionally, your limited company will need to report and pay Stamp Duty Land Tax within 14 days of purchasing the property. This tax is charged at 15% on residential properties costing more than GBP 500,000.

There may be relief available if the property meets certain criteria, such as being used in a property rental business or occupied by employees of the purchaser.

As a qualified Association of Chartered Certified Accountant (ACCA) with over 7 years of experience, I can assist you with your tax filings. Please feel free to reach out to me via email at (e-mail address removed) or connect with me on LinkedIn at www.linkedin.com/in/lisha-shresthaacca.