
Tax Implications
Transferring a property is legally treated as a sale, which can trigger major tax liabilities. The company must pay Stamp Duty Land Tax (SDLT) based on the property’s market value, not the original purchase price. For residential properties owned by a company, an additional 3% SDLT surcharge applies.
You may also face Capital Gains Tax (CGT) if the property’s value has increased, charged at 18% for basic-rate taxpayers and 28% for higher-rate taxpayers. Incorporation Relief may help defer CGT if the property transfer is part of a genuine rental business, but SDLT typically remains payable.