Incorporating into our Ltd co and Higher Stamp Duty refund?

by Readers Question

13:22 PM, 27th July 2020
About 4 months ago

Incorporating into our Ltd co and Higher Stamp Duty refund?

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Incorporating into our Ltd co and Higher Stamp Duty refund?

Hi, We are looking at incorporating our buy to let property (purchased in 2016 as our primary residence and has been let out since 2019) into our Ltd company (set up in March 2020).

The house we currently live in was purchased in Nov 2019 at a higher stamp duty and I was wondering if we would be able to claim the higher stamp duty back if we sold our buy to let property to our limited company.

Please note both me and my husband are named Directors of our Ltd company and both properties are under both our names.

Thank you in advance

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Neil Patterson

13:30 PM, 27th July 2020
About 4 months ago

Hi Preetha,
You need to think of yourselves personally and the Ltd co as separate identities.

Please check this with HMRC and your solicitor, but under the rules it looks like you have replaced a main residence with another and are looking to sell within 3 years so you theoretically would get the additional stamp duty refund.

However, it is a zero-sum gain as you would be paying the Stamp Duty Surcharge on the company purchase.

Mervin SX

19:23 PM, 2nd August 2020
About 4 months ago


Just adding to what Neil has already said:

- You can sell your old residence to your limited company. You will need to get a LTD company BTL mortgage (if you have a mortgage) and pay stamp duty with 3% surcharge (only 3% now until 31st March 2021 if price below £500K).

- Once this deal has gone through, you can then clam back your current home's stamp duty surcharge back, which you paid in November 2019. Not all of it, just the surcharge element.

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