Abacus Tax Advisors

S162 Incorporation Relief Specialist in Leeds, Bradford, Batley, Dewsbury & West Yorkshire | Maximising Your Savings

Are you a landlord looking to postpone Capital Gains Tax (CGT) payments when converting your letting business into a limited company? S162 Incorporation Relief can be a valuable tool to help you achieve this financial goal. Abacus Tax Advisors Ltd is your local S162 Incorporation Relief Specialist, ready to guide you through the process and maximise your savings.

Abacus Tax Advisors Ltd are local accountants that pride ourselves on delivering highly specialised S162 Incorporation Relief advice with a friendly, personal and bespoke service to clients in Leeds, Bradford, Batley, Dewsbury and West Yorkshire.

Understanding S162 Incorporation Relief | What is S162 Incorporation Relief?

S162 Incorporation Relief allows landlords to postpone the payment of CGT until they sell or dispose of their company shares. If the company shares are not sold, CGT is delayed indefinitely. This relief is particularly beneficial when converting a letting business to limited company status, as it helps offset the requirement to pay CGT on property incorporation.

Eligibility Criteria

According to HMRC, landlords must meet specific criteria to qualify for incorporation relief:

  • Be a sole trader or in a business partnership.
  • Transfer the letting business and all associated assets (excluding cash) in exchange for shares in the incorporated company.

Maximising Your Savings

When your letting business is incorporated, your investment equity is converted into company shares. The value of these shares can be offset against the capital gain by utilizing S162 Incorporation Relief. No CGT is payable if the equity from your buy-to-let portfolio exceeds the capital gain.

Qualifying for Incorporation Relief

According to HMRC, you do not need to make a separate claim for incorporation relief; it is granted automatically if you meet the eligibility criteria. To calculate the amount of CGT you owe, subtract the profit made when selling your business from the market value of the shares you receive.

For example, if you transfer your buy-to-let business in exchange for shares worth £100,000 and make a profit of £60,000, you’ll only owe CGT on the £60,000 gain.

Abacus Tax Advisors

Your Local S162 Incorporation Relief Specialist in Bradford, Leeds, Batley, Dewsbury & West Yorkshire | Local Expertise, Personalised Service

As your local S162 Incorporation Relief Specialist, we understand the unique challenges landlords face in Leeds, Bradford, Batley, and Dewsbury. Our commitment to developing personal relationships and providing honest, practical advice without jargon sets us apart.

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Tradesman accounts | Business accounts | HMRC Investigations | VAT Investigations | How to set up a company | Overdue tax returns | S162 Incorporation Relief | Xero Accountant

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Maximise Your Savings with Abacus Tax Advisors Ltd | Contact Us Today

S162 Incorporation Relief can be a powerful tool to postpone CGT payments and maximise your savings as a landlord.

Contact us – Abacus Tax Advisors Ltd in Leeds, Bradford, Batley, Dewsbury & West Yorkshire – at 0113 226 5982 or email us at tax@abacusleeds.co.uk to explore how incorporation relief can benefit your financial future.