Ltd Company Landlord - stamp duty question

[bradders]

I read that stamp duty would be applied to a limited company in the same was as an individual (extra 5%) for portfolio's with less than 15 properties.

If the intention is to have more than 15 properties within a limited company is the extra stamp due on each purchase up to 15, and not thereafter, or is an exemption made during the portfolio build, or can the extra be reclaimed once the 15 property level has been hit?

[GR_TVR]

You're right that the extra stamp duty applies to ltd companies as well. It's 3% though, not 5%.

AFAIK, you don't pay additional stamp duty if you purchase 15+ properties but they have to be part of the same transaction - you can't accumulate them over time.
I also believe that when purchasing multiple properties at once that are "linked" then it's treated as one transaction for stamp duty purposes. So say you bought 15 flats in a block for £100k each, you'd pay stamp duty as if it was one £1.5m property rather than 15x £100k ones.

This is only my brief understanding, could be wrong.

[bradders]

GR_TVR said:

You're right that the extra stamp duty applies to ltd companies as well. It's 3% though, not 5%.

AFAIK, you don't pay additional stamp duty if you purchase 15+ properties but they have to be part of the same transaction - you can't accumulate them over time.
I also believe that when purchasing multiple properties at once that are "linked" then it's treated as one transaction for stamp duty purposes. So say you bought 15 flats in a block for £100k each, you'd pay stamp duty as if it was one £1.5m property rather than 15x £100k ones.

This is only my brief understanding, could be wrong.

Thanks for your answer. Seems that the 15 property rule never actually came into play, according to my tax advisors. They have said though, that a purchase of 6 units or more in one transaction will make the transaction commercial from a stamp duty perspective, rather than following the personal rates.

[GR_TVR]

bradders said:

Thanks for your answer. Seems that the 15 property rule never actually came into play, according to my tax advisors. They have said though, that a purchase of 6 units or more in one transaction will make the transaction commercial from a stamp duty perspective, rather than following the personal rates.

That's interesting, I have no experience of any more than 2 in a single transaction but sounds like a promising strategy.
One thing to bear in mind is if the total value exceeds £500k then it's likely that Annual Tax on Enveloped Dwellings (ATED) applies.

[bradders]

GR_TVR said:

That's interesting, I have no experience of any more than 2 in a single transaction but sounds like a promising strategy.
One thing to bear in mind is if the total value exceeds £500k then it's likely that Annual Tax on Enveloped Dwellings (ATED) applies.

Must check further into that. I thought it applied to individual properties, and relief against it was available if property was held in a property rental business.

[GR_TVR]

bradders said:

Must check further into that. I thought it applied to individual properties, and relief against it was available if property was held in a property rental business.

I think you're right on it being individual properties, but if you buy "linked" properties then it would be treated as a sole property and hence would apply.
I'm not sure about the relief - it's not area of expertise so please do your own due diligence!

All very interesting, though - please update if you do find out more!