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Found 58 results

  1. Hi, I'm buying a residential home with my partner valued at 525k. Currently, I will pay 3% surcharge on the £525k property because I intend to keep my flat which is valued at £425K. My partner is a first-time buyer. What I’m planning to do is sell my current residential home (the flat) to my limited company (SPV) and use that company to rent out the property via a buy to let mortgage. The larger picture is to purchase a few more BTL properties within the next 5 - 10 years using the limited company. I’m also a higher rate tax earner and intend to use this company just to build a portfolio of properties over time. My calculations are these: Limited Company will pay stamp duty of 3% over £40K, so £12,750 to purchase my current flat at a value of £425k. There is no capital gain tax because I’m selling my current residential home to the company at current market value of the flat. The flat has never been rented out and never had a buy to let mortgage. Just standard residential mortgage. Because I’m buying another residential home at the same time as selling my flat (current residential home) to my limited company, I only pay stamp duty above £500k so that would be £1,2500 for a property value at £525K. In essence, because I only have 1 property in my personal name, I don’t pay or can claim tax relief of the 3% surcharge for the second property. So I wouldn’t pay the £17K, 3% surcharge on the property valued at £525K. Is my thought process and calculations correct here? or am I missing something obvious here? I know about the costs of using a solicitor to do the paper work and the accountant to do tax returns on a on-going basis and higher mortgage rates via a limited company but am I missing something with additional costs just to get the property into the limited company. I will of course speak with a property accountant to get clarity. Just want to get clarity from the community if my thought process is correct.
  2. Hoping you could help me with a pretty unique question around stamp duty (I live in Scotland) as I can’t seem to get a clear answer from anywhere else. I’m currently staying with parents while building a property to live in. It is not finished yet but plan to be in in the coming few months. If I purchase an investment property now would I escape stamp duty from this ? Obviously there is no purchase price for my own residential property which would be finished post investment purchase. Any help would be perfect.
  3. Hi fellow property guru's, Newbie here looking for some advice. I'm looking at setting up a SPV Ltd company to invest in some properties, initially I'm looking to flip a few and then build a BTL portfolio. My question is; If I purchase a property under a Ltd Co and personally do not own a property in my name (never have), then later purchase my first property in my own name to live in. Would I still be classed as a first time buyer and get the Stamp Duty (SDLT) Relief on my personal property? Eager to find an answer to this so I can begin my property journey... Thanks in advance for all your advice!
  4. Hubbers, Just after listening to the Chancellors Cuts on Stamp duty and its pretty positive news. I still have a few questions that hopefully can be answered in the coming days but ill leave them here to see what response i get. 1 - Does this apply to all of the UK (England/Scotland/Wales/NI)? 2 - Does this apply to Buy-to-Let property purchases too? 3 - Does this apply to Commercial property? 4 - Stamp Duty holiday? Does this mean after 31st March 2021 the Stamp duty that wasn't paid will then need to be paid back over time? 5 - Do you get a Stamp duty rebate if you purchased a property from the start of COVID -19 and between March and 8th July 2020 paid Stamp duty? Hope we find out the answers to above and feel free to add anymore you have? Cheers, Eamon
  5. Hi guys, Just want to check my understanding as I move towards a transaction. I currently own 2 BTLs but live in rented accommodation as my main residence. We're looking at buying a new place which will be our primary residence. Am I correct that under the new stamp duty rules that I won't have to pay stamp duty under 500k? My understanding is that the 3% won't apply as this will be my primary residence. One other thing that might complicate is that the property includes an annex and a 1 bed cottage that we'll be using for holiday lets. || Thank you!
  6. Hi, wondering if anyone here can help me as I know there are lots of experience property people here! Bit of a long one but here goes....... I’m selling my large flat to buy a house. I have a plan in mind which is: to sell the flat to a property company that I own the company will need a mortgage to buy the flat the property company will then let out the flat at first, my wife and I will rent the flat from my company we will look for a house to buy once we find one we will move out and buy the house in our names then the flat will be let out Can anyone think of any issues about this? In particular I’m thinking about CGT and Stamp Duty. Plus would the lenders have any issues? Re stamp duty, would my wife and I be charged the surplus that applies to those who own more then one property? I’m obviously worried that if the company buys the flat that will count as the first transaction. Then when we buy our house, we’ll be viewed as already owning one property so will be hit with the 3% surcharge on our house (which is likely to be the more expensive property of the two). I’d be really grateful for any thoughts. Thanks. Charlie
  7. Hi Everyone! I've been following Rob & Rob's podcast for a while now, and thought I would take their advice and ask for some help through the forum! My partner and I currently own a 3 bed flat in Kenilworth, which we purchased for £210k in 2017. We currently have it on the market for £250k, but have not had any offers past £230k in 6 weeks... but are now wondering whether keeping the flat and purchasing another smaller property would be the smartest move. We have £60k in cash, so could afford to buy a small house in Warwickshire for £250k (max) and rent out the flat as a buy-to-let. We both currently work full time, and don't have a property company set-up at the moment, so very much newbies to property - but are keen to get started on the ladder for the long term. I'd welcome anyone's opinion on what we should do, or the questions we need to start asking ourselves to work out what our best route is! Thanks everyone,
  8. Fairly new to the UK, I’ve been listening to Property Hub’s Property Podcasts for the past 18 months or so. I’m a few weeks away from completing on a first property for me and my family to live in (which will enable me to access BTL products going forward). There’s been much talk, and I saw an article yesterday suggesting a stamp duty holiday soon, potentially (https://www.thesun.co.uk/news/12027543/rishi-sunak-stamp-duty-holiday-new-buyers/). Unsure whether the holiday will apply to everyone or not, worth noting is that I owned property previously (not in UK), so would not qualify if the holiday was only for first time buyers. Assuming I delayed completion and qualified for the stamp duty holiday, the amount in question represents a substantial portion towards a deposit for a BTL property. The impact is substantial! In short – do I delay completion and wait for the stamp duty holiday (so enabling me to purchase a BTL property), or watch a substantial chunk of money disappear into the ether?
  9. Fairly new to the UK, I’ve been listening to Property Hub’s Property Podcasts for the past 18 months or so. I’m a few weeks away from completing on a first property for me and my family to live in (which will enable me to access BTL products going forward). There’s been much talk, and I saw an article yesterday suggesting a stamp duty holiday soon, potentially (https://www.thesun.co.uk/news/12027543/rishi-sunak-stamp-duty-holiday-new-buyers/). Unsure whether the holiday will apply to everyone or not, worth noting is that I owned property previously (not in UK), so would not qualify if the holiday was only for first time buyers. Assuming I delayed completion and qualified for the stamp duty holiday, the amount in question represents a substantial portion towards a deposit for a BTL property. The impact is substantial! In short – do I delay completion and wait for the stamp duty holiday (so enabling me to purchase a BTL property), or watch a substantial chunk of money disappear into the ether?
  10. Hi All, I am looking to purchase my first property as a BTL through an SPV. Do I retain my first time buyer rights as an individual? I've had conflicting advice/opinion from my mortgage broker and legal professionals. I know that within an SPV you have no choice but to pay the higher rate stamp duty, so does this have any baring?
  11. Hi All, Just thinking about purchasing 3 properties in a ltd for specific purpose of letting. I understand we get the benefit of Multiple dwellings relief (i presume this is only if we are purchasing from same vendor?) but was wondering do you need to factor in the extra 3% surcharge on the average SDLT too? thanks All!
  12. Hi Property Hub Wondering if you could help me. I'm looking to buy a property with a limited company - I know you pay the 3% surcharge on stamp duty - but can you claim that back if the property sells within 3 years? As is the rule when purchasing as an individual. And could you point me in the direction of any resources on the subject? I'm struggling to find any definitive answer online. Thanks! Durian
  13. Hi, I am aiming to transfer two properties which are currently in my name into a ltd company. I don't have the funds in the ltd company to put down a 25% deposit on both properties. I would effectively want to use the money released from the sale as a director's loan to buy the properties. Is this possible? Or is there any way to transfer the properties without saving up a whole new deposit? Furthermore, does any property bought by a ltd company incur the extra 3% stamp duty, or is a ltd company exempt from additional stamp duty for its first purchase? Thanks
  14. Hello! I'm wondering if anyone can help regarding a stamp duty question? If i were to buy a property as residential for cash and then remortgage under a FHL (Investment property), would i then be able to buy a new residential property without having to pay the higher rate of stamp duty? In short, is the above a way of acquiring two properties without paying the higher rate of stamp duty? Thanks!
  15. Paddy

    Stamp duty

    Hi all, I have just sold my own residential home. I am looking to buy a BTL in my ltd company shortly (2 months). However, in approximately a year I will want to buy a home to replace the residential home that I have just sold. Will I use up my stamp duty relief by buying the BTL in the LTD company? Thanks for any help Paddy
  16. Hi Hubbers, Apologies if this has been asked and answered before (I could find anything in the search option). A potential flip has just come on the market directly opposite my main residence that I own jointly with my partner (we aren't married). >>I'm thinking I could move in across the street whilst the refurb is being undertaken, and make this my primary residence (with my partner continuing to live in our existing house) I'm guessing this would mean that I would: Get CGT relief as the flip is my main residence. Avoid the 3% surcharge on purchase of the property as this is replacing my primary residence. However how would the tax man view the stamp duty we previously paid on our primary residence (i.e. the house me and my partner live in currently)? Would they expect some clawback? Anyone have any other potential pitfalls to what I've described? Thanks hubbers! Jono
  17. Hi everyone, I live in London and the rent I pay at the moment is much lower than the mortgage I would pay to buy the same kind of property here (like 40% cheaper). So, I'm thinking to invest my money in a buy-to-let somewhere else and keep renting in London. But I cannot find enough information online to understand if it's a good idea: Will lenders allow me to do buy-to-let as a first investment? Will I lose the the ability of using only the 10% deposit when I will buy my own house in the future? How will the Stamp Duty work? Will I pay less in the first buy-to-let and more in the future own home? Thanks in advance for any help!
  18. Buy to let Ltd company. I'd be really gratedul if any one could offer some advice as I've tried countless local accountants and cannot seem to find one to give me the exact answers I need. I'm at the beginnings of setting up a ltd (spv) company to hold my current main residence, which isn't mortgaged and wholly owned valued at around £150k. Once it's tenanted I want to release some equity/mortgage from the property and start purchasing buy to let's. I'm a higher rate tax payer and also buying a new property with my partner. I've worked out it would make more sense to use the ltd company for tax efficiency purposes. I.e. no additional stamp duty on the new purchase with my partner that would be our first time buy. And also savings on paying at 40% tax with regards to rental income. My question is if my new company were to buy the property off me (which I would sell as a director's loan) would it be subject to any stamp duty,? (Or Land transaction tax, as the property is in Wales). If I do have to pay then it doesn't make much sense to transfer it in terms of additional stamp duty savings associated with me buying the new property with my partner as an 'additonal' rather than 'first buy' My other question is whether someone can recommend a good national accountants or solicitors which specialise in this type of area that I can use? As I'd rather pay a fee and use someone to set it up for me than do the accounts myself . Apologies for any confusion or misunderstandings I may have as I'm rather green to this at present. Thanks in advance, Kind regards, Darren.
  19. Hi, Does anyone know if I was to set up a limited company to own a property with a sole director, would there be any additional stamp duty implications or issues with the lender if another director was added to the company at a later date? Many thanks
  20. Any Tax Savvy People? Would you be able to help or clear this up if you have time please. I am purchasing a property with my friend (we both live together) who is a first time buyer and i have purchased a BLT but don't own any residential property. We are buying in Glasgow and would love to avoid Stamp duty. We have a mortgage company who will lend 90% LTV and my friend will be named on the title and i will be the beneficiary. If i wasn't the beneficiary we wouldn't get the 180k amount need to purchase the property. Therefore setting the mortgage up this way we believe that Stamp Duty would be avoided as my friends first time buyer rights would be in place and me being the beneficiary i wouldn't active the 2nd property Stamp duty. Have any of you came across a situation like this before and any advise would be amazing. Eamon
  21. Hi all Hoping some of you might be blessed to help as I’ve been unable to find the answer anywhere else. Me and my partner bought our residential home last year and paid the 2nd home surcharge as I own another flat (no Morgtage). We are now setting up a BTL business with a third party using a LTD company set up, we’ve had issues trying to sell the flat (which is where a large portion of our funds for the company are to come from) and want to let it out for a short period (it’s service charges are too high to make it a good investment long term) to get some come income to cover the costs. My question is this- if we moved it into the company could we claim back the second home surcharge as the title will have changed, even though I own 33% of the company? I know there will be costs involved in doing this (we estimate to be about £4.5k) but there’s about £17k that we could claim back so something we’re keen to do if possible. Thanks James
  22. Hi, Having spent a significant amount of time online researching and assessing my options, I have yet to come to a conclusion. Please could you help? I live in a flat valued in the region of 300k I am moving to another city due to work and I am a higher rate tax payer I'd like to rent out my current flat (main residence) via Ltd company (SPV) as I intend to build a portfolio going forward. How do you go about with the sale and mortgage (ltd company)? I have a mortgage broker already How would you value the current flat to sell to the ltd company? Is it better to value it low and sell to the ltd company? In which case stamp duty is low but I have less equity to apply for LTD company mortgage (%LTV) Or value higher? SDLT is higher, but I have more equity when applying for BTL morgage? Am I missing something here? Is there anything else I need to consider? Many thanks for your help! Ron
  23. Hopefully I won't complicate my own matter.... I currently own a property by myself which I want to rent out, I'm looking to purchase with my partner (he is a FTB) but really want to avoid stamp duty, I've heard of setting up a limited company could help. But where do I start? What actions do I take to set up a company? Lastly, to avoid paying more tax, should I transfer my current property into the company name or put my new property into my companies name? Thanks in advance
  24. I'm going to try and be as succinct as possible. I have £120,000 of mortgage left on a property worth £200,000. I am the only owner. I want to keep and rent this flat out whilst... Buying a new residence with my GF to the tune of £350,000. I would need to release £30,000 equity from the flat to do this. That would leave £50,000 in the flat for a 75% LTV. We would be able to achieve a 20% deposit on the new Residence (£70,000) but would be more comfortable with a 15% deposit. Would this cause any issues for us elsewhere? I want to know what the best way to do this is with regards to Stamp Duty and whether or not I should keep the flat in my name or set up a LTD company to do this. Will I end up paying the 3% increased Stamp Duty on our new residence (costing us around £10,000 extra) just because I wanted to keep the flat to rent it out? Does using a LTD company avoid this? Is the type of mortgage I want to do this called a Let-To-Buy mortgage? Is there anything I need to know about them?
  25. Hello everyone :) I was wondering if I could pick the hive mind as I am been searching for the answer to this question without success. I currently only one property that is rented out (on a residential mortgage) and I am currently in a rented property. Property is much more expensive where I live now and I will be hammered for a lot of stamp duty, whereas the property I currently only is a relatively cheap property. I am considering setting up a limited company, selling the house to the ltd (I will pay 3% ST on this), and then buying another property (which will be my only one personally owned by me, but obviously I will be a director of a limited company that owns one). Does anyone know what my stamp duty liability would then be on this new property? Thanks +++ in advance for any advice or comments you can offer! Louise
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