Buying company assets in my personal name

[helenwest]

I've got a limited company which owns a house. I'd like to buy the house from the company - I'd be the purchaser, and my company would be the vendor. How do I set a price for the property? I've done some research and think I could justify anything between £220k and £260k. I'm sure there's a legally correct way to do it - anyone know what it is?

At the moment, the property is mortgaged with a business loan agreement with a high street bank. Is there a way to transfer the property onto a personal mortgage? Is that the same as buying it? I'd rather not have to pay stamp duty, if possible - is there a way to transfer the asset without incurring stamp duty?

Any help much appreciated! Alternatively, does anyone have a link to somewhere I can read up on it myself?

Thanks for reading!

Helen

[DIY Accounting]

Yes stamp duty would be payable as while you may own the company the company is a separate legal entity to yourself. Accordingly a new personal mortgage would be required.

The value at which the property will be sold is going to be influenced by the tax implications of the company being liable to pay capital gains tax on the profit while as an individual you would not pay tax on any profit if that property is your sole residence.

Yourself and the company can set the price legally. The only drawback is HMRC can set aside any deal they consider deliberate tax avoidance. Very unlikely in this case but to protect yourself get a written independent valuation that supports the deal with third party evidence the price is market value

[figurewizard]

DIY accounting post is correct advice. All I would add however is to suggest that you ask yourself the question whether or nor this is the right time to buy the house from the company. If prices go down further as many believe possible then there would be implications for capital gains tax on the business plus the cost to yourself of course.

Joe.