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alison@propertyhub.net

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  1. Hi, yes you would pay the 3% additional Stamp Duty rates on buying your home together as you already own another property and you are not replacing your main residence.
  2. The burden of proof is more likely to be yours to prove your intention when you bought the property to disprove HMRC's view.The best way to do this is to document your intent. So, if you are buying a property with the full intention to make it your home, then document it. All homeowners are looking to make a profit if they can when they sell their own home and it is not this that HMRC are wanting to target. They are more interested in people who buy and sell properties in a short space of time having carried out work and show no original intention that they wanted to make that property their o
  3. If you are living in property owned by your Limited Company then you will be taxed on a benefit in kind under the Provision of Living Accommodation.
  4. It is your intention when you bought the property that is important here. If you sell because of a genuine change in those intentions you should be able to demonstrate this to HMRC in order to keep the CGT treatment when you sell the property.
  5. Hi Tom, if your mother has inherited the property on your father's death then her base cost for the property is the value of the property at the date your father died (not the value when he inherited it in 2004). Therefore, the increase between that value and the current value may be a lot less and this would help reduce the capital gains tax due on a transfer. However Stamp Duty Land Tax will still be due on the current market value.
  6. You would be able to claim principal private residence relief to exempt the gain arising on the disposal to your SPV. I assume that you will then move out of the property once it is owned by the SPV. If not, and you continue to live there you would face a benefit-in-kind charge each year as your SPV (your employer) would be providing you with Living Accommodation. Also, the property is worth more than £500,000 and you continue to live there, the SPV would face an ATED charge each year.
  7. As the previous respondent points out, you would end up having to pay Stamp Duty transferring the property to the Limited Company. CGT is also due but you could claim Principal Private Residence Relief to exempt the gain if you have always lived there. However, if you continue to live in any part of the property once it has been transferred to the Limited Company you will face a benefit in kind charge each year as your Employer (the Limited Company) would be providing you with Living Accommodation. You would also have to be careful not to fall foul of the ATED provisions if the prop
  8. https://www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem9928 This second example from HMRC concerns Civil Partners and is clearer in this example that HMRC considers that even if a DOT has been drawn up effectively transferring a beneficial interest it would not be effective for tax purposes unless the property was jointly owned.
  9. Any expenses incurred in relation to the letting in the 7 years prior to the letting commencing can be claimed as pre-trade expenditure once you start to let out the property. For the expense to count as pre-trade expenditure it needs to be of a nature that would enable it to be an allowable expense post-letting - so basically incurred wholly and exclusively for the purpose of the letting business. Pre-trade expenditure is covered in HMRC's manuals here: https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim2505
  10. Just be careful if you do decide to put the property into joint names if there is a mortgage outstanding on it. If you are transferring mortgage debt between you of more than £125,000 then this counts as consideration for Stamp Duty.
  11. Yes, but HMRC seem pretty set on removing it. They are really just consulting on how to implement the changes.
  12. Any individual who is transferring property from their personal name into a Limited Company will need to consider if a Capital Gain arises for CGT. In addition, Stamp Duty is payable on the Market Value of the property being transferred. The Stamp Duty Rates applying are the additional 3% higher rates.
  13. Sure, Debbie https://www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem9923
  14. Unfortunately, as a married couple you are looked at for the purposes of Stamp Duty as one unit. So even though you are buying the next house, as a couple your husband already owns a property which means that the additional 3% Stamp Duty rates become payable. So, even though the property you are buying might be under the £125,000 threshold you would still be liable to pay the 3% on the purchase price. The only way to claim a refund is if you later sell your husband's property within three years of moving out of it. Yes, you are right, a disposal of property after 6 April 2020
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