Readers’ forum: Will transferring title to property trigger tax?

I have acted for a married couple for about five years and a stamp duty land tax problem has just arisen. The facts so far as I have been able to determine them are that a residential property was purchased in 2007. The solicitors’ correspondence and completion statement were addressed to our clients and the funds were provided from our clients’ joint bank account. The legal title however was registered to a limited company owned by our clients. The company has been dormant since incorporation and has never had a bank account.

Ever since the purchase the rental income has been declared on our clients’ personal tax returns. One interpretation of this could be that while the company has legal title to the property my clients have the beneficial interest. Do readers agree?

The problem has arisen because our clients are in the...