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Quick Stamp Duty Surcharge Question....on a LTD Company


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Hullo!

 

I think I know the answer to this but just wanted to double check as I can't find this specific example in the HMRC guide to stamp duty surcharge (although admittedly I may have missed it as I became glassy eyed half way through!).

 

So I am planning to set up a SPV Ltd Company for my BTL portfolio. I currently don't have any BTL but I do jointly own a house, which is my main residence. My question is will my 1st BTL, purchased through a LTD Company be considered my 1st or 2nd home.. or in financial terms... will I have to pay 3% SDLT or 0% (assuming it falls under 125k)? 

 

I'm at the number crunching stage so want to ensure I have my facts and figures correct! Until now I have been using the Which BTL Stamp Duty calculator with some confusing results....

 

Thank you in advance

Thandi

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  • 3 weeks later...

Hi all, 

 

I've just queried this very same thing with my solicitor and they confirmed that the FIRST property in the limited company is NOT subject to the additional SDLT rate.

 

I came on here to see what you all think - which is to the contrary!

 

So I can challenge my solicitor, does anyone have the actual legislation around this? I can't find any definite confirmation online.

 

Cheers all, 

 

Nick

Nick Stott

Managing Director

Homesure Property

 

Tel: 07758 240 799

Email: ns@homesureproperty.co.uk

Follow me on Twitter @ncstott

www.homesureproperty.co.uk

Homesure Property on Facebook

Homesure Property on Twitter

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Here you go, Nick. 

 

First document, first page. Unless your property is less than £40k or has less than 21 years lease, your company will be liable for the extra stamp duty rate

 

https://www.gov.uk/government/publications/stamp-duty-land-tax-higher-rates-for-purchases-of-additional-residential-properties

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7 hours ago, nick stott said:

Hi all, 

 

I've just queried this very same thing with my solicitor and they confirmed that the FIRST property in the limited company is NOT subject to the additional SDLT rate.

 

I came on here to see what you all think - which is to the contrary!

 

So I can challenge my solicitor, does anyone have the actual legislation around this? I can't find any definite confirmation online.

 

Cheers all, 

 

Nick

Sounds like you need a new solicitor mate. Should really know the basics and quite a poor effort.

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On 20/03/2018 at 11:52 PM, mitesh patel said:

Sounds like you need a new solicitor mate. Should really know the basics and quite a poor effort.

 

Ha, maybe so!

 

I've sent them the above link (Page 20) and asked for further clarification.

 

Interestingly, I called HMRC regarding this... and got two different answers...

 

Almost as bad as dealing with Universal Credit!!

 

 

I'll update the forum with the latest in due course...

Nick Stott

Managing Director

Homesure Property

 

Tel: 07758 240 799

Email: ns@homesureproperty.co.uk

Follow me on Twitter @ncstott

www.homesureproperty.co.uk

Homesure Property on Facebook

Homesure Property on Twitter

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