The issue of costs that are the responsibility of the tenant?16:06 PM, 30th July 2019
About 3 weeks ago 49
My hubby and I were unable to sell our residential property A before buying new main residential home B in Aug 2017, so we paid an extra £25k in stamp duty because of the second home tax surcharge of 3%.
In the meantime we’ve rented out property A since then.
We always planned to sell A before the three year mark, and claim back the extra stamp duty we paid.
This morning I had a thought – If we set up a limited company that purchases property A from us. The company will have both of us as directors. Company will be paying stamp duty for purchasing the property A.
Could we then claim back the extra stamp duty paid on property B?
Does it matter that we are the director of the company? Because one could argue it is linked in come way. But again a company is a separate legal entity. I cannot find guidance on HMRC website.
Editors Note: Please ignore the 18 months below as it is now 3 years.
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