Duplicate post from Business forum regarding changing deeds
Discussion
I'm popping this in here too, just incase anyone can help...
Folks, my place is both my home and my business. Roughly 25% commercial space. I would like to alter the deeds 'register' to split the two aspects into seperate entities. A quick call to the Land Registry tells me that I need to fill in form AP1 and send them £50 to do so - has anyone experience of such a thing and is it as simple as the guy from the LR made it seem?
Thanks.
Folks, my place is both my home and my business. Roughly 25% commercial space. I would like to alter the deeds 'register' to split the two aspects into seperate entities. A quick call to the Land Registry tells me that I need to fill in form AP1 and send them £50 to do so - has anyone experience of such a thing and is it as simple as the guy from the LR made it seem?
Thanks.
We already pay business rates on the commercial and Council tax on the domestic area. How would having the two on separate deeds affect this?
Stamp duty is paid on purchase of a property is it not? I'm struggling to see how that would be affected. Also CGT - there's no change in overall value, how does this make a difference?
Many thanks for your insight so far - I just need to decide the most sensible route to follow.
Stamp duty is paid on purchase of a property is it not? I'm struggling to see how that would be affected. Also CGT - there's no change in overall value, how does this make a difference?
Many thanks for your insight so far - I just need to decide the most sensible route to follow.
Edited by Sideways Tim on Thursday 11th November 09:41
Sideways Tim said:
We already pay business rates on the commercial and Council tax on the domestic area. How would having the two on separate deeds affect this?
Stamp duty is paid on purchase of a property is it not? I'm struggling to see how that would be affected. Also CGT - there's no change in overall value, how does this make a difference?
Many thanks for your insight so far - I just need to decide the most sensible route to follow.
That's fine if the Council Tax/Business Rate issues have been dealt with already.Stamp duty is paid on purchase of a property is it not? I'm struggling to see how that would be affected. Also CGT - there's no change in overall value, how does this make a difference?
Many thanks for your insight so far - I just need to decide the most sensible route to follow.
Edited by Sideways Tim on Thursday 11th November 09:41
I presume you are aware of the CGT implications if and when you dispose of the property?
Eric Mc said:
I presume you are aware of the CGT implications if and when you dispose of the property?
Not really to be honest. I always assumed that as it currently classed as a commercial property it would be a case of 'assume the position and brace yourself.'Would splitting the two make a difference?
Yes.
Your home is classified as your "Principal Private Residence" and is totally exempt from Capital Gains Tax.
If you have a "dual use" residence i.e. part business/part private home - any gains on disposal of that property are apportioned bdetween the business part and the home part. The business part will be subject to CGT - the home part will be exempt.
Your home is classified as your "Principal Private Residence" and is totally exempt from Capital Gains Tax.
If you have a "dual use" residence i.e. part business/part private home - any gains on disposal of that property are apportioned bdetween the business part and the home part. The business part will be subject to CGT - the home part will be exempt.
Sideways Tim said:
JPJPJP said:
what is the stamp duty implication?
No idea - why would there be one?http://www.hmrc.gov.uk/sdlt/reliefs-exemptions/no-...
but worth checking
and it might be worth looking at what owns the commercial piece afterwards and how, if at all, any rent is paid - consider a pension owning it for instance, or consider a company owning it, or you on your own, or you and others....
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