1 or 2 solicitors required

C

Cashweasel

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Hi

I am selling a property thaty I own personally to a Limited company that I and my wife are the sole directors of.


My solicitor is telling me that because it is a related party transaction that both parties need a solicitor and there would be 2 sets of fees, obviously!!!

Appreciate any comments or suggestions because it sounds off the wall to me....


Thanks
 
My understanding (but not my area of expertise), is that Company Law is quite specific in relation to transactions between Directors and their Ltd Co - not sure if it's 'law' to have two solicitors, but given the world we live in today, I'd suspect most solicitors would be reluctant to act on both sides of the transaction, lest there be any issues down the line...
 
Thanks PJMN

I can see your point. My guy is very cautious usually so yes he is probably making sure he is covered...
 
rule of thumb is that property should be in individuals names unless there is some substantial reason why it should be in the company name.

for example if the company sells the property, the company is liable to CGT. The shareholders are also liable to income taxes in the event of a dividend.
It is therefore better to own in individual names, then individuals only liable to CGT, hence a huge saving.
 
Ravima said:
rule of thumb is that property should be in individuals names unless there is some substantial reason why it should be in the company name.

for example if the company sells the property, the company is liable to CGT. The shareholders are also liable to income taxes in the event of a dividend.
It is therefore better to own in individual names, then individuals only liable to CGT, hence a huge saving.
Click to expand...

I don't think that was the point of the question.
 
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