Can I Reduce 3% Stamp Duty Surcharge by selling home to my own Ltd

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Can I Reduce 3% Stamp Duty Surcharge by selling home to my own Ltd

    Hi

    About to purchase a new main home for my family and going to buying cash to hopefully avoid stamp duty holiday expiry (it'll be below £500k).

    We won't have the time to sell our current home, and might want to keep it anyway as a BTL to add to our current portfolio which is owned personally and through Ltd Companies.

    Can I just confirm my understanding that if I sell our current main house / registered principal dwelling (at market value) to a Ltd company 100% owned by my wife and myself, this would still constitute a sale of our main residence for SDLT so that I won't pay the 3% surcharge on the new purchase price. And so if I did the transfer to the Ltd before 31/3, I would just pay the 3% surcharge within the Ltd?

    #2
    I understand you have some time to reclaim if you do end up paying the 3% and later sell the extra house.

    Comment


      #3
      Cheers - but deciding if I want to keep it or not.

      Comment


        #4
        You’re correct if the property is in England. Should be no CGT if always was your home and company pays just the 3% additional rate if value below £500k. Even if solicitors can’t get the job done by 31 March, it’s still possible to document the transfer of beneficial interest. This might be handy depending on what’s in the budget next week. Good luck!

        Comment


          #5
          Cheers. Filling in a TP1 isn't difficult!

          Comment

          Latest Activity

          Collapse

          • Reply to Gift Property to avoid Stamp Surchage
            by Neelix
            Just watch out she doesn't leave you as soon as the transfer is complete ...................
            19-04-2021, 17:59 PM
          • Gift Property to avoid Stamp Surchage
            by wangw
            Hi guys,

            1st post here thought I try my luck here.

            I have a fairy basic question which I thought many would have come across. I currently own 100% of my main residence (call property 1), and I live with my unmarried partner who has no property under her name. I am at 45% tax...
            19-04-2021, 15:44 PM
          • Reply to Gift Property to avoid Stamp Surchage
            by wangw
            I suppose the other alternative is to buy the property 2 in her name (provided she can afford the new mortgage, if not we can look at JBSP), wait till legally married and we are free to transfer the properties between us. With interest rates where it is, the actual tax savings would probably be min...
            19-04-2021, 17:55 PM
          • Reply to Gift Property to avoid Stamp Surchage
            by wangw
            yeah it is a good question. as it will be a BTL so will just be the usual BTL prudent tests, hopefully just a question of can the rent cover the amount we want to borrow. I think some banks may not be willing to lend to her if she has no other main residence (i.e. HSBC has this rule).

            ...
            19-04-2021, 17:53 PM
          • Reply to Gift Property to avoid Stamp Surchage
            by Neelix
            I suppose the obvious question is can your partner remortgage property 1 with no previous mortgage history ?...
            19-04-2021, 17:19 PM
          • Reply to Gift Property to avoid Stamp Surchage
            by AndrewDod
            Yes most of what you say is right. There is a heavy tax on marriage - which you are avoiding by being unmarried.

            - Resetting the market value for purposes of her CGT which you would be unable to do if married
            - Avoiding SDLT on other purchases in YOUR name
            19-04-2021, 16:45 PM
          • Tax situation on money I paid for deposit
            by Thurrock1
            Hi, I bought a BTL flat in 2008 and wanted to recoup the deposit I paid on this (approx £25000). It is in joint names but the deposit was paid by me only. I wanted to take back that money and wondered how to list this in the SA tax return. If anyone can advise me i would be really grateful. Th...
            18-04-2021, 08:26 AM
          • Reply to Tax situation on money I paid for deposit
            by Thurrock1
            Thank you for your replies. It's hard to get yr head around!! but i think ive got it.

            I am hoping to take some of this deposit back now as monthly repayments (as the flat was bought in 2008 and i need some of the money now). So I think I am ok doing this, so long as, on the sale of the...
            18-04-2021, 11:49 AM
          • Reply to Tax situation on money I paid for deposit
            by Gordon999
            The SA Tax return is for reporting rental income and rental expenses. The £25K deposit is not reported in the SATR .

            The £25K deposit is treated like a second mortgage loan at Nil interest . So if the property costs £100K , the 1st mortgage lender provides £75K loan and you provide...
            18-04-2021, 11:01 AM
          • Reply to Tax situation on money I paid for deposit
            by jpkeates
            How is the money being "taken back"?
            18-04-2021, 09:21 AM
          Working...
          X