Can I Transfer Property From My Business To Myself?
- 3 hours ago
- 5 min read
“I own a property through my company or trust. Can I just transfer it into my personal name?”
The short answer is yes, but it's not simple and it's rarely affordable.
Whether the motivation is personal (moving into the property), strategic (asset protection or estate planning), or commercial (restructuring a business), transferring property from a business entity to an individual carries significant legal, tax and transfer (stamp) duty consequences.
Before you change anything on title, it’s important to understand how these transfers are treated, and why getting legal advice early may save you tens of thousands of dollars.
In This Article:
It’s Not A Simple Transfer...
Even if you are the sole director of the company or the sole beneficiary of a trust, the law does not treat this as an internal shuffle.
Under Queensland property law, transferring property from a company, trust or business entity to yourself as an individual is considered a non-arm’s length transaction. In practical terms, this means the transfer is treated as a sale between two separate legal parties.
A non-arms length transaction in Queensland is one where the buyer and seller have a pre existing relationship, such as family members or related entities, that may influence the price so it does not reflect true market value. These transactions are closely reviewed by authorities such as the Australian Taxation Office (ATO) and the Queensland Revenue Office (QRO) to ensure taxes and duties are properly assessed and not avoided.
That requires the same steps as any other property transaction, including:
a formal Contract of Sale or other written agreements between the entity (seller) and you personally (buyer)
preparation and lodgement of a Form 1 Transfer with Queensland Titles
proper Comparative Market Analysis (CMA)
compliance with state and federal tax requirements
Transfer (Stamp) Duty Considerations
One of the most common misconceptions is that transfer (stamp) duty can be avoided because no money is really changing hands. This is not the case.
How Transfer Duty Is Calculated
In Queensland, transfer duty is calculated on the higher of:
the purchase price, or
the unencumbered market value of the property
For example, if a company transfers a property to its director for a nominal amount of $1, but the property has an unencumbered market value of $800,000, the Queensland Revenue Office will assess transfer duty on the $800,000 figure, not the $1 contract price.
For related-party transactions, the Queensland Revenue Office will always rely on market value, regardless of the price stated in the contract.
What This Means In Practice
Independent Valuation Required
You will generally be required to obtain an independent professional valuation to support the transfer duty assessment.
Limited Related-Party Exemptions
There are very limited exemptions for transfers between companies, trusts and individuals.
Full Transfer Duty Payable
Transfer duty is payable in the same way as if the property were being purchased from an unrelated third party.
Simple put: you cannot avoid stamp duty by selling the property to yourself for $1.
Capital Gains Tax Considerations
Transfer duty is only part of the picture. The other major issue is Capital Gains Tax (CGT), which is assessed by the Australian Taxation Office (ATO).
When property is moved out of a business entity and into another name, the Australian Taxation Office (ATO) considers this a CGT event, regardless of whether the change is purely administrative and no money actually changes hands.
Key CGT Issues To Be Aware Of
Market Value Applies
The sale price is deemed to be the market value, not what you actually paid.
Capital Gain Assessed To The Entity
The entity must calculate CGT based on the difference between market value and its original cost base.
Companies Miss The 50% Discount
Unlike individuals, companies are not entitled to the CGT discount for assets held longer than 12 months.
In many cases, Capital Gains Tax can be just as significant as, or even exceed, the amount payable in transfer duty. Depending on the property’s value, how long it has been held, and the structure that owns it, the CGT liability can run into tens or even hundreds of thousands of dollars.
Because CGT is assessed under federal tax law and interacts closely with business structures, trusts and company rules, it is important to obtain financial advice before proceeding. Speaking with a financial specialist and your accountant early can help identify potential tax exposure, assess whether any concessions may apply, and determine whether an alternative structure or timing could produce a more favourable outcome.
Division 7A Risks For Company Owners
If the property is owned by a company, there is an additional risk that is often overlooked and can have serious tax consequences. Company-owned properties are subject to strict tax integrity rules, and transfers involving directors or shareholders are closely scrutinised. What may appear to be a straightforward transfer can unintentionally trigger adverse tax outcomes if it is not structured correctly.
If you acquire the property for less than market value, or without properly structured consideration, the difference may be treated as an unfranked dividend or a loan to you personally.
This falls under complex tax rules known as Division 7A, and can result in immediate and unexpected personal tax liabilities. This is why property transfers involving companies should never be handled without both legal and financial/accounting advice.
Why Legal Advice Matters Before You Act
What appears to be a simple ownership change is, in reality, a transaction involving contract law, Queensland transfer duty, federal capital gains tax, and company and trust law considerations.
Errors in this type of transaction can be extremely costly, and once a property transfer has been completed, it is often very difficult or impossible to reverse.
At RHC Solicitors, we regularly assist clients with complex conveyancing matters involving companies, trusts and related-party transactions. We work closely with accountants and other financial specialists to ensure the transfer is handled correctly, compliantly and as tax-effectively as possible.
If you are considering transferring property from a business entity into your personal name, or into a trust or family structure, speak to us before taking any steps.
Disclaimer: This publication is not intended to be comprehensive, nor does it constitute legal advice. We are unable to ensure the information is current and there is no guarantee in relation to accuracy. You should seek legal or other professional advice before acting or relying on any of the content of this publication. The views and/or opinions expressed in this publication is that of the author and may not necessarily represent the views and/or opinions of RHC Solicitors.
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