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william joyce

Additional Stamp Duty through limited company with multiple directors

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Hi everyone,

 

My two brothers and I are looking at investing in quite a residential property. We have started a limited company as have been advised this is best for tax purposes for us. 

 

One brother already owns a house already. Will this affect the bracket of stamp duty when buying through the company?

 

Any help would be much appreciated.

 

Kind regards

 

Will

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I have a subtly different situation...

 

Me and my wife live in a house that is in my name. She used to have a property, she sold it.

 

If my wife sets up a limited company to purchase property through, would her first one be at the lower rate of stamp duty as she does not have any other ownership (on deeds/lease/tenancy ...) and this would be the first house solely in her name. Infact, it would be the only property that her name would be associated with.

 

Regards Paul.

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If you do not own a property personally, but are a Director of a company holding property, are you subject to the 3% increase if you then buy a property for your own residential use?

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I realise that makes (common) sense, but can't be too sure with tax law! What if you have owned a house in your own name, but disposed of it years previously? I have my own view on the answer to these questions, but often you get different points of view!

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For clarity a Ltd company and a person (including directors) are separate entities as far as tax is concerned. They have no impact on each other’s tax liabilities.

 

An individual will be charged an extra 3% SDLT on purchase of a second and subsequent properties. A Ltd property company pays an extra 3% SDLT on all properties it owns including the first.

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On 7/20/2018 at 3:39 PM, kirsteenb said:

That's my understanding @james a however @haf1963's comment "You don't pay extra stamp duty if you have never owned a house in your own name before" made me wonder if there was doubt about that.

apologies for the confusion and james is correct in its about owning at the relevant point in time.

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