Exchanged but thinking of buying via company now?

Exchanged but thinking of buying via company now?

10:41 AM, 24th May 2017, About 7 years ago 13

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I have exchanged on 2 flats to complete at the end of the year and starting to set up the finance for them, I need to know if I can now switch to purchasing via a company (I will have to set up) although I’ve exchanged in my own name.

Obviously I’ve put this questions out to my accountant and solicitor who are both notoriously slow to react to anything.

Harlequin Garden


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Harlequin

10:24 AM, 6th June 2017, About 7 years ago

Well this one didn't - but I have had my head in the sand with this S24 issue I'm afraid and as all my properties are owned in my name I'm not up to speed with company purchases - I'm one of those 'accidental investors' and found myself with 15 properties so I should know.

The way the solicitor explained it was that as I'd exchanged a while back during the old stamp duty rates because it was now being bought through a company the purchase was being reset so I would be liable for the extra 3%, not that because it was being bought in a company, I've re read it with your information and it still reads like that - it was the reset that brought it into the new rates - I need to pay more attention I guess.

Thanks for this information. I haven't bought with the new stamp duty and was hoping to give it a wide berth, it amounts to lot of money in Central London.

Ian Narbeth

10:55 AM, 6th June 2017, About 7 years ago

Hi Harlequin
You may be entitled to pay SDLT using the old SDLT rules and rates if you exchanged contracts before 26 November 2015. You original post does not say when you exchanged. If you exchanged on or after that date you will have to pay the extra SDLT.

You can calculate the SDLT here: https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro

You need to get advice from an accountant and give him/her full information about your circumstances so that he/she can advise properly. Incorporation and transferring properties in may be the best option but there may be other ways to rearrange your affairs without putting properties into a company which itself has long-term implications and possible problems of double taxation.

Harlequin

11:17 AM, 6th June 2017, About 7 years ago

Yes, I exchanged in October 2015.

Thanks.

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