Transfer of current property into Ltd Company & buying a property as main residence

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    Transfer of current property into Ltd Company & buying a property as main residence

    Do I need to pay high rate SDLT on my 2nd property (which is £16800) if I transfer my current residential property to a LTD company (SDLT £9500) and buy 2nd home as my main residence.


    #2
    see replacing main residence : https://www.gov.uk/stamp-duty-land-t...property-rates

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      #3
      Thanks for the reply.

      Can I sell my residential property to a LTD company of which my wife/ or I am a director and then call my self as a 1st time buyer and go on and buy another property?

      Someone told me you will still be a 2nd time buyer and have to pay high rate SDLT. Can someone please confirm.




      1. Do I need to pay high rate SDLT on my 2nd property (which would be £16800) if I transfer my current residential property to a LTD company (SDLT £9500) and buy 2nd home as my main residence.

      2. Can I reclaim £16800 - £ 9500 = £6300 if I buy first buy 2nd property and pay £16800 and later on sell my 1st property to a LTD company ( with either me or my wife as director ) and pay £9500 SDLT on this sale.

      Comment


        #4
        You can never be a first time buyer if you already hold a property under your name.

        If you have sold your first property, then you can buy another property without paying the extra 3%. No sdlt below £125K and 2% sdlt between £125K and £250K.

        If you have sold your first property, and then you can buy the next property for below £500K before March 2021, and no sdlt to pay.

        The company has to pay the extra 3% sdlt if the property is valued over £40K.

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          #5
          Thank you.

          But if I sold my 1st residential property to a LTD company with me as a director, do I need to pay a surcharge on 2nd property which I will buy ?

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            #6
            My LTD company own one BTL property.

            Now I want to buy a residential property in my and my wife's name... Do I need to pay high rate SDLT ?

            Comment


              #7
              The additional rate doesn't depend on whether you're a first or second time buyer, it's affected by who many properties you own on completion.

              Then there is a rebate mechanism for recovering the surcharge if you are selling your previous home after having bought another one.
              That's to make sure that someone with only one home but who doesn't buy and sell at the same point isn't disadvantaged.

              If your company own your home, you will own one property on completion of the 2nd home and so not pay the surcharge.
              However, your company will pay the surcharge anyway - because companies do.

              Unless property 2 is significantly more expensive than property 1 it does seem quite a lot of work.
              When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
              Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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