Stamp Duty revision 08 July 2020
Discussion
TEKNOPUG said:
vdn said:
I’ve exchanged already and complete this Friday! So an immediate change would be massively beneficial to me.
I completed last Friday.... To be honest, I’m being told that with exchange already done; we may be tied to the original stamp and not benefit - despite not yet completing. I’m looking into it.
They often go off exchange dates but occasionally, completion - for example: the start of a countdown to sell one’s home - to be refunded the additional stamp on a new purchase / considered 2nd home at that moment.
We will see. I stand to save, potentially, over 30 grand...
I also spoke with the manager of a Gascoigne branch I speak with often and he said that the government may well give with one hand and take with the other - and my particular situ’ could see no benefit.
We will see. Not long to go.
As an aside: people planning for savings / IHT benefits etc, in future - on BTL / investment properties that are in personal ownership; now might be the time to get them over to LTD co’s depending on what they say and personal circumstance of course.
vdn said:
TEKNOPUG said:
vdn said:
I’ve exchanged already and complete this Friday! So an immediate change would be massively beneficial to me.
I completed last Friday.... To be honest, I’m being told that with exchange already done; we may be tied to the original stamp and not benefit - despite not yet completing. I’m looking into it.
They often go off exchange dates but occasionally, completion - for example: the start of a countdown to sell one’s home - to be refunded the additional stamp on a new purchase / considered 2nd home at that moment.
We will see. I stand to save, potentially, over 30 grand...
I also spoke with the manager of a Gascoigne branch I speak with often and he said that the government may well give with one hand and take with the other - and my particular situ’ could see no benefit.
We will see. Not long to go.
As an aside: people planning for savings / IHT benefits etc, in future - on BTL / investment properties that are in personal ownership; now might be the time to get them over to LTD co’s depending on what they say and personal circumstance of course.
Removing stamp duty from a 500k property would 'only' save £15k
Replying to JD above
I presume he means that because now it is not a level playing field for property companies and individuals in the sense that property companies can still claim tax relief on finance and certain kinds of maintenance, whereas individuals now can’t .
If you move properties into a limited company ownership you get the same allowances. The problem with this, or one of them, is that you have to pay stamp duty to ‘sell’ the property to the company you set up. If stamp duty is halted for a while it seems a good time to do it. What will happen no doubt is that private landlords doing this will be exempted from anything he says to stop it with regard to stamp duty.
There are other issues though as if you have a btl mortgage it becomes something different it the owner is now a ltd company. This may cause issues too, and almost certainly more costs.
I presume he means that because now it is not a level playing field for property companies and individuals in the sense that property companies can still claim tax relief on finance and certain kinds of maintenance, whereas individuals now can’t .
If you move properties into a limited company ownership you get the same allowances. The problem with this, or one of them, is that you have to pay stamp duty to ‘sell’ the property to the company you set up. If stamp duty is halted for a while it seems a good time to do it. What will happen no doubt is that private landlords doing this will be exempted from anything he says to stop it with regard to stamp duty.
There are other issues though as if you have a btl mortgage it becomes something different it the owner is now a ltd company. This may cause issues too, and almost certainly more costs.
didn't say about BTL but that's saving me £11.5k!!!
ITP said:
Of course it doesn’t, no surprise there.
But then BBC saysThe chancellor announces a temporary holiday on stamp duty on the first £500,000 of all property sales in England and Northern Ireland, to run until 31 March next year.
He says the change will take place immediately.
The levy is paid on land or property sold for £125,000 or more – although first-time buyers pay no tax up to £300,000.
vdn said:
TEKNOPUG said:
vdn said:
I’ve exchanged already and complete this Friday! So an immediate change would be massively beneficial to me.
I completed last Friday.... Lost out on £20k furlough too. Still, HMRC appreciated my 5 figure Corporation Tax payment in May, so that's alright....
I seem to recall when they changed the thresholds they included sales in the previous month but expect that won't apply here.
Edited by TEKNOPUG on Wednesday 8th July 13:07
TEKNOPUG said:
vdn said:
TEKNOPUG said:
vdn said:
I’ve exchanged already and complete this Friday! So an immediate change would be massively beneficial to me.
I completed last Friday.... Lost out on £20k furlough too. Still, HMRC appreciated my 5 figure Corporation Tax payment in May, so that's alright....
ITP said:
Replying to JD above
I presume he means that because now it is not a level playing field for property companies and individuals in the sense that property companies can still claim tax relief on finance and certain kinds of maintenance, whereas individuals now can’t .
If you move properties into a limited company ownership you get the same allowances. The problem with this, or one of them, is that you have to pay stamp duty to ‘sell’ the property to the company you set up. If stamp duty is halted for a while it seems a good time to do it. What will happen no doubt is that private landlords doing this will be exempted from anything he says to stop it with regard to stamp duty.
There are other issues though as if you have a btl mortgage it becomes something different it the owner is now a ltd company. This may cause issues too, and almost certainly more costs.
Thanks very much for the explanation.I presume he means that because now it is not a level playing field for property companies and individuals in the sense that property companies can still claim tax relief on finance and certain kinds of maintenance, whereas individuals now can’t .
If you move properties into a limited company ownership you get the same allowances. The problem with this, or one of them, is that you have to pay stamp duty to ‘sell’ the property to the company you set up. If stamp duty is halted for a while it seems a good time to do it. What will happen no doubt is that private landlords doing this will be exempted from anything he says to stop it with regard to stamp duty.
There are other issues though as if you have a btl mortgage it becomes something different it the owner is now a ltd company. This may cause issues too, and almost certainly more costs.
I thought I was missing a trick somewhere!
JD said:
ITP said:
Replying to JD above
I presume he means that because now it is not a level playing field for property companies and individuals in the sense that property companies can still claim tax relief on finance and certain kinds of maintenance, whereas individuals now can’t .
If you move properties into a limited company ownership you get the same allowances. The problem with this, or one of them, is that you have to pay stamp duty to ‘sell’ the property to the company you set up. If stamp duty is halted for a while it seems a good time to do it. What will happen no doubt is that private landlords doing this will be exempted from anything he says to stop it with regard to stamp duty.
There are other issues though as if you have a btl mortgage it becomes something different it the owner is now a ltd company. This may cause issues too, and almost certainly more costs.
Thanks very much for the explanation.I presume he means that because now it is not a level playing field for property companies and individuals in the sense that property companies can still claim tax relief on finance and certain kinds of maintenance, whereas individuals now can’t .
If you move properties into a limited company ownership you get the same allowances. The problem with this, or one of them, is that you have to pay stamp duty to ‘sell’ the property to the company you set up. If stamp duty is halted for a while it seems a good time to do it. What will happen no doubt is that private landlords doing this will be exempted from anything he says to stop it with regard to stamp duty.
There are other issues though as if you have a btl mortgage it becomes something different it the owner is now a ltd company. This may cause issues too, and almost certainly more costs.
I thought I was missing a trick somewhere!
If there is no small print, now is the time to get personally owned investment properties over into a LTD co: to avoid the stamp duty hit that you would normally incur ‘selling’ it to your own company. Having investment properties in LTD companies has its perks.
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