Can I get on Help to Buy list if I place BTL in Ltd co?

by Readers Question

9:01 AM, 30th January 2018
About 9 months ago

Can I get on Help to Buy list if I place BTL in Ltd co?

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Can I get on Help to Buy list if I place BTL in Ltd co?

A year ago I purchased a Buy to Let in my own name, I am looking to buy my own residential home to live in. The property value has around 50k equity and 100k mortgage.

My first question is, if you put your property into a private limited company or possibly a partnership could you apply for the the Help to Buy scheme?

Or are there any other ways on getting on the Help to Buy scheme without selling the BTL!

Secondly, if you own properties in a private limited company and you have maxed out your inheritance. So you put your son/daughter as shareholders, will the company just carry on in their name without them having to pay 40% inheritance tax if the main shareholder passed away?

Many thanks.

Will



Comments

James Barnes

9:14 AM, 30th January 2018
About 9 months ago

I found this on a quick trawl of help to buy webpages

You'll find a lot of information about the government's current Help to Buy scheme in the Help to Buy Buyer's Guide published on the Help to Buy website. This categorically states that "the property purchased [using the Help to Buy scheme] must be your only residence. Help to Buy is not available to assist buy-to-let investors or those who will own any property other than their Help to Buy property after completing their purchase". More seriously, "applicants who make fraudulent claims for Help to Buy assistance will be liable to criminal prosecution" so just not mentioning your rental property is not an option.

Neil Patterson

9:42 AM, 30th January 2018
About 9 months ago

From the Help to Buy website FAQs >> https://www.helptobuy.gov.uk/equity-loan/faq/

"Can I own other homes and buy a Help to Buy home?
No. Help to Buy is designed to assist you to move on to or up the housing ladder and must be your only residence. This means you will be expected to sell your current home if moving up the ladder. The disposal of your current home will be verified by your solicitor/conveyancer before you can proceed to exchange contracts on your Help to Buy home.

Can I own a Help to Buy home and buy a second home?

No. If you can afford to purchase another home you will have to repay the Help to Buy: Equity Loan.

The property purchased must be your only residence. Help to Buy is not available to assist buy-to-let investors or those who will own any property other than their Help to Buy property after completing their purchase.

You cannot rent out your existing home and buy a second home through Help to Buy.

Applicants who make fraudulent claims for Help to Buy assistance will be liable to criminal prosecution. Fraudulent claims will always require immediate repayment of the equity loan."

Puzzler

23:02 PM, 30th January 2018
About 9 months ago

You would still have IHT liability for your share of the asset, same as if you held shares in a FTSE 100 company. I asked the same question, not to avoid tax but because I was hoping to avoid the need for sale and/or remortgage. It doesn't work like that though as the assets and liabilities still have to be transferred and your children would have to be approved by the lender.


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