Transfer of Partnership Property to Limited Company

We recently advised a client who has transferred a Buy to Let property worth £470,000 to their Limited Company.

The property was held jointly with the client’s spouse as part of a larger portfolio of Buy to Let properties.

Our client’s solicitor had applied the Higher Rates applicable to residential transactions in calculating the Stamp Duty Land Tax due. They calculated the tax charge on this transaction to be £25,100.

Upon further review, we determined that the chargeable consideration for this transaction had been incorrectly calculated. It should in fact have been zero, which would mean no tax charge should have been applicable.

We wrote to HM Revenue and Customs and explained the error, who in due course refunded all £25,100 in overpaid tax (plus interest) to our client.