Higher rate stamp duty

[fellatthefirst]

I have a question, hoping someone can give a clear answer.

I own my own house
I am the director of a company that is looking to buy a residential property to let out

Do I have to pay the higher rate stamp duty on the purchase?

[anonymous-user]

The liability isn't yours, it is the company's

You can see the sdlt cost using the HMRC calculator, choose the company option as you work through it

https://www.tax.service.gov.uk/calculate-stamp-dut...

[Eric Mc]

Still has to be paid.

[fellatthefirst]

Thanks for this. The increase since 1st April is huge!

[williaa68]

DELETED: Comment made by a member who's account has been deleted.

I have a slightly different perspective. I have never seen why property as an asset class is treated differently from other assets. If I borrow to buy shares my interest isn't tax deductible. If I borrow to buy property it is. I am not sure there is an economic argument for one asset class having tax advantages to invest on a leveraged basis while all others don't. The playing field is being levelled to some extent but property for investment is still being favourably treated which is bound to distort the market.

[kiethton]

williaa68 said:

I have a slightly different perspective. I have never seen why property as an asset class is treated differently from other assets. If I borrow to buy shares my interest isn't tax deductible. If I borrow to buy property it is. I am not sure there is an economic argument for one asset class having tax advantages to invest on a leveraged basis while all others don't. The playing field is being levelled to some extent but property for investment is still being favourably treated which is bound to distort the market.

But if you're a business (which a BTL is, in a way) you are able to offset the cost of interest as a valid business cost, as are BTL in a company wrapper. I think the government has got it completely wrong here TBH

[Billsnemesis]

As of April 2017 a small buy to let landlord owning property directly will have a harsher tax regime than British Land, Land Securities or Grosvenor, the three biggest property companies in Britain.

And this is a government that supports free enterprise?

[ninja-lewis]

kiethton said:

williaa68 said:

I have a slightly different perspective. I have never seen why property as an asset class is treated differently from other assets. If I borrow to buy shares my interest isn't tax deductible. If I borrow to buy property it is. I am not sure there is an economic argument for one asset class having tax advantages to invest on a leveraged basis while all others don't. The playing field is being levelled to some extent but property for investment is still being favourably treated which is bound to distort the market.

But if you're a business (which a BTL is, in a way) you are able to offset the cost of interest as a valid business cost, as are BTL in a company wrapper. I think the government has got it completely wrong here TBH

The Government published draft legislation earlier this month to restrict the tax deductibility of corporate interest expense. The Autumn Statement also raised concerns over high levels of incorporation and BTL landlords in corporate structures are likely to be one of their top targets.

[kiethton]

ninja-lewis said:

kiethton said:

williaa68 said:

I have a slightly different perspective. I have never seen why property as an asset class is treated differently from other assets. If I borrow to buy shares my interest isn't tax deductible. If I borrow to buy property it is. I am not sure there is an economic argument for one asset class having tax advantages to invest on a leveraged basis while all others don't. The playing field is being levelled to some extent but property for investment is still being favourably treated which is bound to distort the market.

But if you're a business (which a BTL is, in a way) you are able to offset the cost of interest as a valid business cost, as are BTL in a company wrapper. I think the government has got it completely wrong here TBH

The Government published draft legislation earlier this month to restrict the tax deductibility of corporate interest expense. The Autumn Statement also raised concerns over high levels of incorporation and BTL landlords in corporate structures are likely to be one of their top targets.

Still just draft at the current time thankfully.

[Terminator X]

DELETED: Comment made by a member who's account has been deleted.

Tax hike on Directors dividends is stalking us in the background too, not sure when it will hit as in actual payments due.

TX.

[Eric Mc]

It came into effect on 6 April 2016 i.e the start of tax year 2016/17.

Therefore, tax arising will become part of the payment of your 2016/17 Self Assessment tax bill. This is due and payable by 31 January 2018.

When Making Tax Digital comes into effect in April 2018. I expect that dividend tax might end up being paid within weeks of the dividend itself - much as PAYE is now.

[anonymous-user]

Billsnemesis said:

As of April 2017 a small buy to let landlord owning property directly will have a harsher tax regime than British Land, Land Securities or Grosvenor, the three biggest property companies in Britain.

And this is a government that supports free enterprise?

Whereas previously the unincorporated LL had a massively favourable tax regime, including the offsetting of finance costs at her marginal tax rate (up to 45%)