TR1 Transfer of Property into a Ltd

Trusts Discussion
1

Hi,

I have a client is transferring property currently held by his wife and himself into a Limited Company.
The Ltd has a Family Investment Company Structure, father and mother are directors, two daughters are the shareholders. The property is to be loaned to the company, so the father & mother can take income back out of the Ltd as loan repayments.

I assume they use the TR1 to transfer as in any normal land transaction?

Richard Bishop
Premier EP

2

You can’t loan a property - you can transfer the freehold, you can grant or transfer a lease or you can allow use (a licence).
It sounds as though you are selling the property in return for a price which is to be left outstanding, in which case you can use a TR1.
This will of course have SDLT, CGT and IHT issues.

Andrew Goodman
Osborne Clarke LLP

1 Like