Stamp Duty Surcharge Refund for Property Transfered to Company?

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    Stamp Duty Surcharge Refund for Property Transfered to Company?

    Hi all,

    I currently have one property that is solely in my name that I've been renting out for 6 months before which I lived in for 12 years.

    I purchased a new more expensive property this time with my wife 6 months ago and as a result of keeping the previous property we had to pay the stamp duty surcharge on the new, more expensive property. I've recently setup a company which I plan to purchase more buy to let properties through in the coming years and ideally would like to transfer my existing property over however researching online the general consensus seems to be that it's not worth doing as the stamp duty charge will negate the tax savings benefits.

    I am aware that as I lived in the rented house before I rented it out that if sold within 3 years I would be entitled to the stamp duty surcharge refund on my new property so my question is this, if I transferred my buy to let property to the company would I be able to claim the surcharge refund? If the answer is yes then this would be worthwhile as the refund of the surcharge on the new more expensive property would be higher than the stamp duty payable to transfer my less expensive rental property into the company.

    Any help or advice would be much appreciated!

    Thanks in advance,
    Neil.

    #2
    This website may help you to understand the rules on reclaiming extra 3% stamp duty within 3 years of selling former home :

    https://www.gov.uk/guidance/stamp-du...ntial-property

    Comment


      #3
      This is what the guide says under "Companies" :

      Companies must pay the higher rates for any residential property they buy if:
      • the property is £40,000 or more
      • the interest they buy is not subject to a lease which has more than 21 years left

      If the property costs more than £500,000, the 15% higher threshold SDLT rate for corporate bodies may apply instead.

      So if you sold to your company, you could claim a refund for sale of former residence within 3 years but your company would have to pay the higher rate sdlt.

      Comment

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