Second home stamp duty rules

[fridaypassion]

If you have a main residence can you transfer it into a Ltd company in order to avoid the stamp duty on another property purchased? We are looking to move at the moment but the stamp duty penalties are pretty punitive if we kept our current house on. I understand that you can pay the duty and reclaim it if you sell within 3 years (?) This may be an option as we are mainly considering this option to avoid the hassle of selling and been in a chain but it would be nice not to have to find a big chunk of cash to loan to the government!

[anonymous-user]

Generally sdlt is due to HMRC from the ltd when it acquires the house

How about selling and going into a rental whilst you sort out the next one?

[fridaypassion]

Wouldnt fancy moving twice. We said never again after the last time!

[developer]

There is a gov't website that guides you through a flow process to confierm liability:

https://www.gov.uk/stamp-duty-land-tax/residential...

[Jockman]

fridaypassion said:

If you have a main residence can you transfer it into a Ltd company in order to avoid the stamp duty on another property purchased? We are looking to move at the moment but the stamp duty penalties are pretty punitive if we kept our current house on. I understand that you can pay the duty and reclaim it if you sell within 3 years (?) This may be an option as we are mainly considering this option to avoid the hassle of selling and been in a chain but it would be nice not to have to find a big chunk of cash to loan to the government!

The limited company will pay sdlt. If any of the owners of the ltd company have another property then enhanced sdlt will be due.

I just did the latter

[Eric Mc]

If you are living in a house owned by a limited company - of which you are a director, employee or are a connected person, you will be charged a taxable Benefit in Kind UNLESS you pay a commercial rent to the company.

[Candellara]

Question. What if our "main residence" has only one person (me) on the deeds.

Can i purchase another house in the UK in my Wife's name only - thus not having to pay additional 3% SD?

[Eric Mc]

They have to pay the extra 3%.

[fridaypassion]

No

[Candellara]

22 yr old Daughter? :-)

[anonymous-user]

If only you weren't married!

[KevinCamaroSS]

Candellara said:

22 yr old Daughter? :-)

Of course, provided she buys the house, e.g pays the deposit from her own funds and the mortgage is in her name and paid by her. Money laundering rules mean most mortgage providers are going ta ask where the funds come from

[Alpinestars]

KevinCamaroSS said:

Of course, provided she buys the house, e.g pays the deposit from her own funds and the mortgage is in her name and paid by her. Money laundering rules mean most mortgage providers are going ta ask where the funds come from

A gift from her parents.

[tight fart]

Then she'll get the tax when really buying one.

[Alpinestars]

tight fart said:

Then she'll get the tax when really buying one.

Yep. But there would be a cashflow advantage of pay later not now, and probably at a lower rate/amount. And they would have to circumnavigate gifts with reservation for IHT.

[anonymous-user]

So what would the situation be if not married?

If I own the prime residence that my girlfriend and I live in and we want to buy a second property for development can I gift her the money to buy it outright? Assuming I last 7 years are there any tax ramifications?

[Jockman]

garyhun said:

So what would the situation be if not married?

If I own the prime residence that my girlfriend and I live in and we want to buy a second property for development can I gift her the money to buy it outright? Assuming I last 7 years are there any tax ramifications?

Doesn't matter if you're married. Enhanced sdlt is based on ownership.

Your example would appear to be tax efficient. Just pray she doesn't meet someone else

[Jockman]

Alpinestars said:

tight fart said:

Then she'll get the tax when really buying one.

Yep. But there would be a cashflow advantage of pay later not now, and probably at a lower rate/amount. And they would have to circumnavigate gifts with reservation for IHT.

And if future budgets raise the enhanced sdlt to 5%..........

[Alpinestars]

Jockman said:

And if future budgets raise the enhanced sdlt to 5%..........

Or lower them back down ...

I'd rather be paying less now.

[Alpinestars]

Jockman said:

Doesn't matter if you're married. Enhanced sdlt is based on ownership.

Your example would appear to be tax efficient. Just pray she doesn't meet someone else

Married couples treated as one. So extra SDLT for a second home bought by the other spouse or civil partner.