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Second home SDLT / LTD company advice


james tp

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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

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Moving the former home into a Limited Company does allow you to trigger a disposal. Provided you are doing this within 3 years of the former property being your main residence you can apply for a refund of the additional higher rate Stamp Duty paid when you bought your current home. It does not matter that you own 33% of the company shares. You no longer own an interest in the property - this is owned by the Limited Company which is a separate legal entity

Alison Ward
Accountant & Client Manager

www.propertyhub.net/service/tax/

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We can only give general information on a public forum, and nothing in this post should be interpreted as advice. To speak to us about becoming a client and receiving bespoke advice, call us on 020 3936 2170 or email tax@propertyhub.net

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