My wife and I would like to know the pros and cons of moving our property portfolio in Liverpool into a limited company.  

Arthur replies: 

There are three main obstacles to incorporating a property business: (1) capital gains tax (CGT) for the individuals; (2) stamp duty land tax for the company; and (3) transferring the mortgages into the company. Regarding (1), people frequently claim incorporation relief. Regarding B, relief is potentially available for partnerships. Regarding C, if you can get agreement from your lenders to transfer the mortgages without significant cost, incorporation becomes viable. If you can overcome A, B and C, there are two important advantages to incorporation. Firstly, interest costs for residential landlords are fully allowable. Secondly, the properties receive an immediate CGT uplift on incorporation (i.e., the market value at the date of incorporation becomes the new base cost for CGT purposes).