Meeting points

Properties and companies

Peter Rayney opened the conference by reminding us how important it is to establish the tax status of a company that holds properties. He noted that there are three types of property company: investment development and dealing. In practice a property company may do a mix of all three so with reference to entrepreneurs’ relief and inheritance tax business property relief he said that a company must have substantial trading activities. To qualify for the reliefs there should be no more than 20% non-trading activities when looking at turnover profits assets employed and time management of the business.

If considering incorporation stamp duty land tax (SDLT) may be chargeable on transfers of property if the seller and company are connected. However if the property is transferred from a partnership to a company ...