Me and my husband own a freehold property jointly. The property has a commercial shop on ground floor and a residential flat on first floor.
We bought the property in a bad condition, renovated it and now it values more. Ideally we want to sell it on soon.
We want to get two separate leases for the shop and flat so we can sell them individually. Or have a flat as freehold and make the shop leasehold.
Our solicitor suggested we set up a limited company with us being the shareholders and directors. This limited company will own the lease for the two property.
We are thinking put my name as the freeholder and my husband name as the leaseholder. So my husband can utilise his loss and we can use our Capital Gain Excemption etc.
Which way is better? Keep it personal or in a company?
Also when we get the separate leases, do we need to recognise them separately at market value which means we will make a gain/loss as the freeholder in this tax year?
Many thanks for any comments!