Reply To: Inheritance on partner’s death

#93845
Anonymous
Participant

Just to second what Inez says. It is actually quite straightforward to do this, especially if you are used to the paperwork associated with setting up/running a UK limited company. You can simply buy a company “off the shelf”, and it can remain “dormant” until you need it for the property. All you have to do is file the annual return at Companies House online. You do not even have to file a UK Tax return for it until after you “activate” it. You do need to tell the tax people it exists (though these days they will probably contact you within a few weeks of formation anyway). If you only use the company to hold the property and do not otherwise “trade” with it, there would not normally be any regular tax liability. There would be CGT when you dispose of the property (if at a profit, of course), but you can make various deductions from this. Keep a careful accounting of ALL expenditures on maintenance, purchase costs, etc. These may be off-set against CGT.

Andy